What happened this week:

  • Market of mortgage-backed securities collapsed
  • Retail sales are below forecast
  • U.S. is urging China to buy MBS papers
  • Stock market made an impressive rally
  • Iran asks Japan to pay yen for oil

What to watch next week:

  • Anything credit-related, junk bonds, LBOs etc.
  • Real estate reports due next week
  • PPI/CPI not very interesting, no surprises there