This Week follows on the best week’s we have had recently in the interest rate markets. Monday should however see some pressure in bonds and mortgages after such a deep decline in rates last week. There isn’t a lot of data this week, March retail sales is the most critical with questions about how consumers are spending. Last weeks the two ISM indexes were weak, the March employment report was very disappointing with only 88K new jobs and thousands more dropping completely out of the job market. This week starts earnings season for Q2, Alcoa always leads the way and will report on Monday evening. Last week's economic news includes several factors that drove U.S. mortgage rates lower. The Bank of Japan announced that it would increase its purchase of bonds by $1.4 trillion over the next two years. Other significant economic news involves an unexpected drop in the number of new jobs created last month. According to the BLS, the unemployment rate fell due to workers leaving the work force instead of workers finding jobs. This week Treasury Auctions will be held Tuesday, Wednesday and Thursday.
| Date | Time (ET) | Statistic | For | Market Expects |
| 04/09/13 | 10:00:00 AM | Wholesale Inventories | Feb | 0.50% |
| 04/09/13 | 01:15:00 PM | 3Y Treasury Note Auction | - | - |
| 04/10/13 | 01:15:00 PM | 10Y Treasury Note Auction | - | - |
| 04/10/13 | 02:00:00 PM | Treasury Budget | Mar | -$107.0B |
| 04/10/13 | 02:00:00 PM | FOMC Minutes | 03/20/13 | - |
| 04/11/13 | 08:30:00 AM | Initial Claims | 04/06/13 | 365K |
| 04/11/13 | 08:30:00 AM | Continuing Claims | 03/30/13 | 3058K |
| 04/11/13 | 01:15:00 PM | 30-year Treasury Bond Auction | | |
| 04/12/13 | 08:30:00 AM | Retail Sales | Mar | 0.00% |
| 04/12/13 | 08:30:00 AM | PPI | Mar | -0.10% |
| 04/12/13 | 08:30:00 AM | Core PPI | Mar | 0.10% |
| 04/12/13 | 09:55:00 AM | Mich Sentiment | Apr | 78 |
| 04/12/13 | 10:00:00 AM | Business Inventories | Feb | 0.40% |
Probably the most important thing this week is the releases of the FOMC minutes from the 3/21 meeting. Markets will be looking for how discussions developed about how and when the Fed will begin withdrawing frm the easing’s. After the weakness in most economic reports over the last couple of weeks it isn’t likely now that the Fed has any plans to cut back, at least for now. That said, the Fed is talking and discussing the eventual withdrawal the is the main force keeping stock markets moving higher. This week Treasury will auction $66B of notes and bonds beginning Tuesday through Thursday. Global news concerning North Korea and the European Union economic situation could also move U.S. markets up or down depending on the nature of the news. The good news for Richmond homeowners is uncertainty and low expectations of the financial markets typically help keep mortgage rates lower.
