More Hits Than Misses in Early Data

A rash of data has greeted a Treasury market that was already experiencing an early morning sell-off. The second estimate of Q1 GDP from the Bureau of Economic Analysis was the day’s most eagerly awaited news and it came in at an unchanged 6.4%. Also in the report, we learned that Q1 Personal Consumption rose 11.3% in an upward revision from the previously reported 10.7%. The quarter-over-quarter Personal Consumption Expenditures Index was revised to a 2.5% rate from 2.3%.

From the Census Bureau, a preliminary April report was released showing that Durable Goods Orders fell 1.3% in a surprise outcome for analysts expecting to see growth of 0.8%. Without Transportation, Orders grew 1% and that beat estimates calling for 0.7%. March’s growth of 1.9% was revised to 3.2%. Core Capital Goods Orders grew 2.3% versus predictions of 1% while March’s growth of 1.2% was revised to 1.6%. The Bureau of Labor Statistics reported that Initial Jobless Claims for the week ending May 22nd totaled 406k and that was less than the prior week’s 444k and also less than the 425k that was forecast. Continuing Claims for the week ending May 15th fell to 3.64M from a downwardly revised 3.74M versus estimates of 3.68M.

Later today we’ll hear about April’s Pending Home Sales from the National Association of Realtors and the Kansas City Fed will be announcing its Manufacturing Index for May. The Treasury will then be selling $62B Seven-Year notes. Treasury prices were already starting the day off lower and that hasn’t changed much since this morning’s news arrived. The Long Bond’s yield has inched up to 2.29% while the Ten-Year’s yield has risen to 1.61%. The Two-Year is still steady at around 15 basis points. Crude oil is off about a half-dollar to $65.73 while gold is unchanged at $1,896. Equity futures are mixed.