Analysts at TD Securities say the University of Michigan's sentiment report is expected to show a slight dip in its index to a still firm 97.1 level in May following a 1.2 decline to 97.2 in April in the US session.

• Given its heightened relevance in current Fed discussions, market participants are likely to focus on the inflation expectations components, particularly in the 5-10yr measure as it has recently flirted with all-time lows at 2.3%.