Treasury Yields and U.S. Durable Goods Orders: A Surprising Correlation
Treasury Yields Respond to Durable Goods Data
Treasury yields are showing signs of weakness following a surprising 9.9% increase in U.S. durable goods orders for July. This uptick reverses June's revised 6.9% decrease, painting a more optimistic picture of the U.S. economy.
- Excluding transportation, new orders decreased by 0.2%.
- Excluding defense, orders increased significantly by 10.4%.
This data suggests that interest rates may not be as high as previously thought, despite rising unemployment and layoff numbers. Investors appear to be weighing labor data more heavily in their assessments, leading to speculation about future monetary easing.
Current Treasury Yields
- The 10-year Treasury yield is trading lower at 3.795%.
- The two-year Treasury yield has also decreased to 3.901%.
The WSJ Dollar Index slightly increases by 0.1%, indicating a mixed sentiment in the financial markets.
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.