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Post Durables/Cap Goods React

US TSYS
  • Fast two-way as Treasury futures rebound after lower than expected Durable Goods Orders (-6.1% vs. -5.0% est); ex-Trans (-0.3% vs. 0.2% est, prior down revised to -0.1% from 0.5%).
  • Cap Goods Orders Nondef Ex Air in line with 0.1% est while prior was down-revised to -0.6% from 0.2%.
  • Futures tested early London highs (TYH4 109-28) but are scaling back to near midrange again: 109-24.5 last (+5), 10Y yield at 4.2717% (-.0078). Curves hold steeper, 2s10s +2.772 at -41.331.
  • Initial technical resistance remains above at 110-13 (20-day EMA)

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