The consensus is that the trade deficit will widen by a couple billion dollars. Too much more than that would send the dollar reeling, but I'm not really expecting any surprises--good or bad.
Update: More than a couple billion, it was up by about $4 billion. The bond market was not pleased. Of course, all was forgiven the next day.
Some investors said the market's gains were due in part to continued relief that the Federal Reserve had sustained its pledge to be measured in raising interest rates and reiterated its sanguine view on inflation.
Or they might have been picking up bargains after Tuesday's fall. Who knows? Writing stories on the bond market is sort of like writing stories on which way the wind is blowing.
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