Durable Goods Orders Rise 3.1%: Equity and Bond Markets Unimpressed

Durable goods orders are up, but the bond market is flat, and the equity markets are mostly red as I type.

The Census Bureau Advance Monthly Report on Durable Goods shows new orders rose 3.1% from a revised 3.5% decline in January.

Was January an outlier? Was February?

Perhaps the answer is neither if one averages the two months together. We saw the same thing happen in June and July. Strong months are followed by weak months and vice-versa, but muddle through has been the norm.

If this is the start of a renewed period of strength, the bond market displays no hint of it. 2-year and 5-year yields are a tad lower as I type. 30-year and 10-year yields are up two and one basis points respectively.

Of course, the bond market could be reacting to trade wars or nothing at all, but there is no indication anywhere that factory strength is about to lift off.

Mike "Mish" Shedlock

Comments
No. 1-5
Mike Mish Shedlock
Mike Mish Shedlock

Editor

Yes very healthy - all the way to a 50% eventual decline

klausmkl
klausmkl

The equity markets had 15 straight months up, a several month pullback or even longer is relatively healthy

Mike Mish Shedlock
Mike Mish Shedlock

Editor

Shhhh - Someone might notice

AWC
AWC

Aside, am I sensing a decoupling of the miners from the general market trend?

AWC
AWC

Buy it before the price goes up. That's the agenda here. Well covered in the MSM, Alt Media and Mad Magazine.