This is a huge week that is packed full of big-time economic reports, Treasury auctions and more Fed-Speak.
This morning’s Durable Goods Orders was much weaker than expected (-7.3% vs. consensus estimates of -3.0%). This weaker data is very positive for MBS and we would have rallied even more if the prior reading wasn’t improved from -3.0% to +3.9%).
Of course GDP will get center stage as we get the second revision for this number.
Treasury auctions this week:
08/27 – 2 Year Note
08/28 – 5 Year Note
08/29 – 7 Year Note – most important
What is on the agenda for this week?