Treasury Rally Continues

Bond prices were already slightly higher in this morning’s early trading even before some mixed data was released by the Census Bureau. But prior to that, the Mortgage Bankers Association reported that new Mortgage Applications fell 4.1% for the week ending January 22nd. A little later, the Census Bureau reported that Durable Goods Orders in December rose just 0.2% and that disappointed analysts expecting a 1% boost. Without Transportation, Orders grew 0.7% against an estimated 0.5% rise. November’s boost of 0.4% was revised to an 0.8% boost. Also in the Bureau’s report, non-defense Capital Goods Orders without Aircraft and Parts slightly beat estimates calling for 0.5% growth by coming in with a 0.6% rise. November’s previously reported growth rate of 0.5% was revised to 1%. This afternoon, January’s FOMC meeting will conclude with Jerome Powell’s press conference. Investors, as always, will be looking for guidance on potential changes to the central bank’s program of asset purchases.

Meanwhile, the Ten-Year’s yield has dipped to 1.02% as the yield on the Long Bond has fallen to 1.78%. The Two-Year is little changed at 12 basis points. Crude oil is pretty flat at $52.59 while gold’s $8 slip takes that price to $1,843. Equity indices are well into the red.