The week begins with the Retail Sales report, an uncommonly relevant piece of data to be in the 8:30am time-slot first thing Monday morning.  It's made more interesting by Friday's abrupt sell-off in bond markets--the second in as many weeks.  That weakness brings MBS prices very much closer to the lower end of their intermediate 102-00 to 106-00 range with Fannie 3.0s ending Friday at 103-04.  

10yr Treasuries have moved from 1.62 to 1.92 in the same six trading sessions, with the most recent rout on Friday taking them back into the long term uptrend in rates stretching back to July 2012's all-time lows.  To merely make it to the edge of that uptrend, 10's would have to rally 10 basis points today.  That zone of yields around 1.83% is a pivotal area, and one to which markets seem to be paying attention for the past 2 years, coincidentally or otherwise.  

If such a rally were to commence, it would likely need the help of an exceptionally downbeat Retail Sales report today.  Anything else runs the risk of further confirming the ominous 'test' back into the 1.83+ zone ('test' = technical analysis term connoting the first phase of a move out of or into a trend; requires 'confirmation' before being regarded as significant).

Even if this test is confirmed, the month of May is young and markets are on edge as to what secrets lie in next week's FOMC Minutes.  There's perhaps 'too much' buzz about Fed QE tapering/concluding/winding down, and this could keep things volatile until we get more clarity.  

Monday's Retail Sales is the biggest repot of the week, but there's a moderately brisk data calendar on the four following days.

Tuesday is the lightest, with only Import/Export Prices at 8:30. (Fed Speakers: Plosser)

Wednesday picks up with Producer Prices, Empire State Manufacturing, Industrial Production and NAHB's Housing Market Index.  

Thursday is similarly busy with Initial Claims, Consumer Price Index, and Housing Starts all in the 8:30am time slot and the Philly Fed Survey at 10am. (Fed Speakers: Fisher, Raskin, Williams)

Friday wraps up with Consumer Sentiment as the lone significant report. (Fed Speakers: Kocherlakota)