The FOMC will begin its day-and-a-half meeting tomorrow and Treasury investors are already making adjustments for what is expected to be a dovish event. In early trading, Treasury prices are up slightly, but not enough to move the Ten-Year off of its 58 basis point perch. The rally in gold continues as new records are set. Today’s upward move of over $30 has pushed the price to around $1,935. Crude oil is up slightly to around $41.60.

Earlier this morning, the preliminary June report for Durable Goods showed a bigger-than-expected rise of 7.3%. Analysts were looking for 6.9%. A robust reading on the heels of May’s explosion of 15.1% that was revised from 15.7%. Core Capital Goods also beat estimates with a gain last month of 3.3% versus the expected 2.2%. A little later this morning, the Dallas Fed is expected to report that its Manufacturing Index became less negative in July, but is still contracting.