Wednesday afternoon's release of Fed minutes will be more important than usual, since they will be gleaned for clues that could tip the debate about whether the Fed will hike rates at its September rates meeting.
The minutes of the Fed's July meeting are expected to be released at 2 p.m., and traders are hoping the Fed minutes will give new insight into Fed thinking on rate hikes that did not come out in the post-meeting statement. Before that, the consumer price index will be released at 8:30 a.m. and will be important if it brings any surprises, especially a lower-than-expected pace of inflation.
John Briggs, RBS head of strategy said there are three things he's watching in those minutes, and the bond market could potentially move on any of them. "I'll be looking to see if they're still 'confident' that if the data continues on its way, that inflation will move up to their target. They've said as long as there's ongoing improvement in the economy, they expect to get inflation to go back to target," he said.