Several B-grade economic developments on the docket, as well as the first post-downgrade 10 Year bond issuance. Latest monthly QE Lite POMO schedule released today.
9:45: Financial black hole Fannie Mae auctions off $1 billion in 3 month and $1 billion in 6 month benchmark bills.
10:00: Wholesale inventories (June). The June wholesale inventories report may have implications for revisions to Q2 GDP growth.
Consensus: +1.0%; Last +1.8%.
10:00 JOLTS (Job Openings and Labor Turnover Survey) (June). The monthly JOLTS report includes data on gross labor market flows, and therefore provides more detail on current job conditions than the timelier payroll report. Jobless claims figures for June suggest that layoffs may have remained somewhat elevated.
13:00: Treasury auctions off $24 billion in 10 year notes, net paydown just $0.431 billion
14:00: The US budget balance (July). The CBO estimates that the July budget deficit declined slightly from the same month last year. However, the improvement largely reflects shifts in the timing of payments. According to the CBO, absent those shifts, the budget deficit would have improved by just $4bn relative to last year.
CBO: -$132bn; Consensus: -$-135bn; Last (July 2010): -$165bn.
14:00: New monthly POMO schedule for ongoing QE Lite to be announced. Very small net number expected, as $13-15 billion in total MBS repurchase and bond maturity driven dry powder appears. Very soon this number will rise to over $100 billion per month, but first Bernanke has to get over the foreplay stage.