Treasury prices get jiggy after weak data

|By:, SA News Editor

The disappointing April durable goods print combines with yet another big revision downward in Q1 GDP to send the 10-year Treasuy yield lower by four basis points to 2.54%. The short end parties as well, with December 2016 Eurodollar futures up 7 basis points to 97.96 (higher Eurodollar futures mean lower rates), still pricing in about 200 bps of rate hikes between now and then.

In addition to the headline miss in durable goods (-1% vs. +0.4% expected), core durable goods fell 0.1% vs. an expected 0.4% gain.

Before doing too much buying or selling on these numbers, do note they're both old news. The durable goods number is from May and GDP is from Q1, and we're about to enter Q3.

TLT +0.5%, TBT -1%

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