Treasury Yields React to U.S. Durable Goods Orders Surge
Treasury Yields Respond to Strong Durable Goods Orders
Treasury yields are experiencing a notable decline as a result of a remarkable 9.9% increase in durable goods orders reported for July. This surge comes on the heels of a revised 6.9% decrease in June. Even when excluding transportation, new orders have dipped slightly by 0.2%, but the outlook remains more upbeat with a striking 10.4% increase noted when excluding defense spending.
Economic Outlook and Implications
This data provides a more favorable view of the U.S. economy, suggesting that, contrary to recent indicators like rising unemployment and layoffs, interest rates may not be excessively high. Investors, however, seem to be more attuned to labor data, showing a tendency to bet on potential monetary easing.
Current Market Movements
- The 10-year Treasury yield is presently trading at 3.795%,
- while the two-year yield sits at 3.901%,
- both reflecting a downturn since the durable goods data was released.
Dollar Index Performance
The WSJ Dollar Index has experienced a mild increase of 0.1%, adding another dimension to the market's reaction to these economic indicators.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.