I won’t be expecting any fireworks from economic data today but the market will be tuned into initial jobless claims at the bottom of the hour. The consensus is for a 222K reading, up a touch from 218K last week.
On a higher reading, the market will be tempted to extrapolate that the employment market is softening and that could put a fresh bid into yields. By the same measure, if claims continue to stay around 218K for a few more weeks, the market will need to back away from expectations of a Q1 rate cut.
Other data today is low tier with Canadian building permits at 8:30 am ET and US wholesale sales at 10 am ET.