The day began with bonds rallying back into positive territory after Durable Goods came in slightly weaker than expected. Some of those gains may be better attributed to the 8:20am CME open and “new week” trades, but the data will take some credit for being at the right place at the right time. After that, things were refreshingly flat and that’s a victory consider a deluge of corporate bond issuance (something that is normally more likely to put upward pressure on rates).
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- Durable Goods
- -4.5 vs -4.0 f’cast, 5.1 prev
- Excluding aircraft/defense
- 0.8 vs 0.1 f’cast, -0.3 prev
- Durable Goods
08:56 AM
Modestly weaker overnight, but now rallying after Durable Goods data. 10yr down 3.7bps at 3.91. MBS up 7 ticks (.22).
11:23 AM
Giving up some of the early gains. 10yr still down 1.7bps at 3.93. MBS still up an eighth of a point.
03:12 PM
Fairly flat all day. No major change from previous update despite some ups and downs in between.
