- Durable Goods -1.1 vs -0.6 forecast
- Cap-Ex -0.2 vs +0.3 forecast
Bond markets were in slightly weaker territory heading into this morning's economic data. Volume had been very light in the overnight session and much of the bounce back was already underway with more early domestic traders coming online around 730am.
The Durable Goods data wasn't crushingly weak, but neither was it a modest miss. Moreover, the important Cap-Ex component (Non-defense capital goods orders excluding aircraft--essentially "core" durable goods) was slightly negative whereas markets were looking for a slight gain.
10yr yields are now down just over 1bp at 2.134 and Fannie 3.5 MBS are up 1 tick at 103-09. There is no other significant economic data on tap for the day.
