Treasury Sell-Off Continues

Lots of numbers this morning beginning with Jobless Claims. For the week ending February 20th, the BLS reported that Initial Claims amounted to 730k and that was less than the 825k that was expected and also less than the prior week’s downwardly revised 841k. Continuing Claims for the week ending February 13th fell to 4.42M from 4.52M and that was slightly below estimates looking for 4.46M. From the Census Bureau, we learned that Durable Goods Orders grew 3.4% last month even after December’s 0.5% growth was revised to 1.2%. Analysts were only expecting 1.1% for January. Without Transportation, the growth was 1.4% and that was twice the growth rate expected. December’s 1.1% gain was revised to 1.7%. Core Capital Goods Orders grew by 0.5% last month and that was slightly below the forecast of 0.8%, but December’s 0.7% growth was revised to 1.5%. From the Bureau of Economic Analysis, GDP for last year’s fourth quarter was revised to 4.1% from the initially reported 4%. Some analysts thought the second estimate would come in at 4.2%. A second count of Q4 Personal Consumption dipped slightly to 2.4% from 2.5% while core PCE remained at 1.4% quarter-over-quarter. A little later today, we’re expected to get a report disclosing that Pending Home Sales were flat last month along with a report from the Kansas City Fed that its Manufacturing Index might have slipped to 15 this month from last month’s 17. The Treasury will be selling $62B Seven-Year notes later today.

Treasury prices have improved from their early morning lows, but the Long Bond is still off about a point for a yield of 2.28% while the Ten-Year’s half-point slide has pushed that yield to 1.43%. The Two-Year’s yield is up slightly to 14 basis points. Crude oil is little changed at $63.28 while gold’s $20 dip has taken that price to $1,785. DJIA futures are mildly green.