Logical Weakness After Stronger Data

Forget "love."  Today data hurts.  Durable Goods fired a warning shot at 8:30am.  Consumer Confidence and New Home Sales finished the job at 10am.  With that, a modestly stronger start gave way to a logical sell-off of moderate proportions.  By 11:30am, the losses had run their course and bonds drifted sideways for the rest of the session--perfectly inside the prevailing range. 

Econ Data / Events
    • Durable Goods
      • 1.7 vs -1.0 f'cast, 1.1 prev
    • Durables, nondefense, excluding aircraft
      • 0.7 vs 0.0 f'cast
    • New Home Sales 
      • 763k vs 675k f'cast, 683k prev
    • Consumer Confidence
      • 109.7 vs 104.0 f'cast, 102.5 prev
Market Movement Recap
09:24 AM

Decent recovery after initial morning weakness.  10yr down half a bp at 3.717.  MBS up 1 tick (.03)

10:07 AM

Weaker after New Home Sales data and consumer confidence.  10yr up 2.2bps at 3.745.  MBS down nearly an eighth.

02:48 PM

Flat all afternoon after AM losses.  10yr up 4.5bps at 3.768.  MBS down just over an eighth.