Tomorrow monring at 7:30 am (central) we have the only real economic report that has a minor possibility of moving some markets and that is the CPI (Consumer Price Index).
Currently the consensus forecast for the month of July is for an increase in prices of .2% month over month or 2.3% year over year.
Today we had the producer price index come in flat–no increase, month over month–the core rate (stripping out food and energy) was at an increase of .3% for an increase of 2.8% year over year.
Markets have recently pretty much ignored both the PPI and CPI in terms of being market moving events–and likely that will continue–BUT a crazy number like plus .5% would get folks attention. We don’t expect something crazy to happen, but if it does watch the 10 year treasury to breach 3%.
Of course any number over the expected .2% adds fuel to the fire for a Fed Funds rate hike in September, which we already believe is near cast in stone.