Weird Reaction to Durable Goods, But Generally Slow and Sideways

Weird Reaction to Durable Goods, But Generally Slow and Sideways

The economic data drought finally began to dry up this morning with Durable Goods being the first remotely relevant report since last Thursday.  Results were mixed for the bond market with most of the normal line items seemingly being good for bonds. The more obscure "core capital goods shipments" was bad for bonds due to its implications for Q1 GDP.  While that's not the GDP data coming out this week, it was still enough to reverse the microscopic gains seen in the first minute or two of the trading reaction.  Of course all of the above is much ado about nothing in the bigger picture as bonds must continue waiting for truly meaningful data.  There was similarly uneventful volatility surrounding the 7yr Treasury auction, but yields remained under the prevailing technical ceiling at 4.32%.