Bond Market Update

Durable Orders Jump in July

• Total new orders for durable goods surged 9.9% month-over-month in July (Briefing.com consensus 4.0%) following a downwardly revised 6.9% decline (from -6.6%) in June. That surge, like the downturn in June, was driven by transportation equipment orders, which soared 34.8%. Excluding transportation, durable goods orders declined 0.2% month-over-month (Briefing.com consensus 0.1%) following a downwardly revised 0.1% increase (from 0.5%) in June.
  • The key takeaway from the report is that business spending was soft in July, evidenced by a 0.1% decline in new orders for nondefense capital goods excluding aircraft.
• Yield Check:
  • 2-yr: -2 bps to 3.89%
  • 3-yr: -3 bps to 3.70%
  • 5-yr: -2 bps to 3.63%
  • 10-yr: -2 bps to 3.79%
  • 30-yr: -2 bps to 4.08%