New home sales and speeches from several Fed officials. Even with the debt ceiling breached, and retirement funds tapped, it does not prevent the Treasury from issuing new bonds: $35 billion in 2 Years to be auctioned off at 1 pm. But never fear: Brian Sack will pump another $5-7 billion in our daily POMO.
8:25: Federal Reserve Governor Elizabeth Duke on financial education.
9:50: Kansas City Fed President Thomas Hoenig at housing conference.
9:50: Philadelphia Fed President Charles Plosser at housing conference.
10:00: New home sales (April): Small decline. Goldman forecasts that new home sales fell by 5% in April, punctuating a streak of weak housing data. The decline mostly reflects payback from a strong March and inclement weather in some parts of the country.
GS: -5.0%; median forecast (of 75): flat; last +11.1%.
10:00: Richmond Fed survey (May): Also weaker? Forecasters expect that the Richmond Fed index softened slightly in April, in sympathy with the Empire State and Philly Fed measures. The Richmond Fed survey contains a separate set of questions sent to firms in service-providing industries, which is one of the few direct measures of services activity in the monthly indicator cycle. Last month, these series showed healthy growth in the services sector.
Median forecast (of 11): +9; last +10.
11:00: Fed monetizes $5-7 billion in bonds due 11/30/2013-05/15/2015
13:00: Debt Ceiling Breach, No Problem? Treasury auctions off $35 billion in 2 Year Notes today despite having no debt ceiling capacity. No problem - will just cut in retirement funding to push the gap.
13:20: St. Louis Fed President James Bullard speaks at event in Missouri. Topic TBA.
From GS and ZH