The minutes from the Fed's April meeting, released yesterday, indicated that many Fed officials saw a June hike as unlikely.... NO SURPRISE. The market reaction was muted as the removal of the June rate hike has already been priced in, and there was very little in the way of new information. The hike is now a meeting by meeting decision, so every data release will bring increased volatility as the market looks to determine the likelihood of a September, October, or December rate hike. With dollar strength weighing on exports and seasonal effects, a weak Q1 is expected and the Fed has already written that off as transitory. We will look to other economic indicators to paint a consistent picture of US economic outlook.

Initial Jobless Claims gained 10k, coming in at 274k vs. 264k prior. Continuing Claims came in slightly lower at 2211k vs 2229k prior. Overall a balanced report, and not doing much to move treasuries. Tomorrow brings CPI, and an early market close.