Durable Good Orders

Durable goods orders fell 2.5%, weaker than the expected 0.6% decline....definitely a positive for the bond market.

In addition, the Fed continues to purchase mortgage bonds in an effort to keep rates relatively low. The housing sector is essential to the stability of the economy and the last thing the Fed wants is for the housing sector to deteriorate more. Low rates are essential to their success. However, there are selling pressures the Fed deals with as we have seen with spikes as of late. Fortunately again this morning the buying pressure outweighed the selling in what looks to be a repeat performance from yesterday. Let's hope the 5 year auction this afternoon is better than the 2 year yesterday. We also have the Fed Beige book at 2pm ET.