New orders for U.S. manufactured goods such as cars, planes, and appliances, which are referred to in economic reports as Durable Goods; fell for a second straight month in June. This data coupled with other reports reflecting falling consumer confidence and anemic job suggest the economic growth is indeed slowing.
The market reactions have been fairly muted with U.S. stocks trading slightly lower, and bond prices lower as well. With falling bond prices we have seen interest rates move higher, with the yield on the 10 year note currently trading at 3.05%.
Tuesday’s $38 billion auction of 2 year notes was well received and investors are awaiting the results of today’s auction of $37 billion of 5 year notes.
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