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Durable Goods Orders Fall
Wednesday’s report on Durable Goods Orders was expected to show a decline of about 3.5% in August, but the results were even lower – a 4.9% drop in durable goods orders overall. Without transportation equipment, which tend to sway the results widely, orders fell 1.8%. The report is a popular gauge of business sentiment, the thinking being that businesses will invest in durable goods only when their outlook is positive. Wednesday’s report reflected the largest decline in orders in seven months.
Yields Slip
The soft economic news, combined with strong interest in the 2-year Treasury auction, pushed MBS and Treasury prices up on Wednesday, lowering yields. After opening higher, the 10-year Treasury yield was down to 4.62% by the end of the day – even with the previous day’s close.
The next releases will be Weekly Jobless Claims and the final revision to second-quarter GDP at 8:30 Eastern on Thursday.

10-year Treasury Up Seventeen Basis Points

During the heavy economic news week of September 17, the 10-year Treasury yield jumped seventeen basis points, ending the week at 4.63%.
MondayNew York manufacturing missed estimates. 10TSY close: 4.47%
TuesdayThe FOMC lowered the Fed Funds Target Rate by 50 basis points. Energy prices pulled producer prices down significantly; core prices rose. 10TSY close: 4.48%
WednesdayAs with producer prices, consumer prices slid overall, but core prices rose. Housing Starts slipped. 10TSY close: 4.52%
ThursdayJobless Claims dropped slightly. Leading Indicators declined unexpectedly, but Philadelphia manufacturing soared. 10TSY close: 4.67%
FridayNo economic data was released. 10TSY close: 4.63%

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