A trifecta of economic data highlight Friday's session. The personal income report takes center stage early, with expectations for 0.2% increase in income and 0.1% dip in PCE according to the MMS survey median. However, market reaction will be muted ahead of Michigan sentiment and Chicago PMI. The University of Michigan consumer sentiment index is expected to be little changed from the preliminary October reading of 89.4. A larger than expected change may inspire a kneejerk reaction, but Chicago PMI will quickly steal the spotlight.
Chicago PMI is expected to post a decent gain, with the MMS survey median pointing toward a jump to the 55.0 level from September's 51.2. A surge to this area or better would add pressure to Treasuries.