30 year 3.25% * 15 year 2.75%
Lots of financial news for the week’s end, little of it good for the economy and most all of it good for interest rates. Much of the bond market’s focus though has been on the Spain Bank stress test.
So what’s happened? The Durable Goods report came out and it is dismal. New orders for July were revised down from 4.2% to 3.3% and August, while expected to be down 5% was actually down a whopping 13.2%. Even with big ticket transportation removed, the prior report went from -0.4% to -1.3%. Transportation numbers fell 34.9% after a 13.1% gain in July. Civilian aircraft orders which haven’t been doing well to start with, fell an unbelievable 101.8%. I guess the one order from last month must have cancelled.