Durable Goods Orders soared in July, scoring their largest gain in about a year. This report is volatile from month to month, so Bonds didn't react much on the strong economic news.
The New Home Sales report was better than expected. The monthly sales inventory came in at 7.5 months, which is less than last month's reading and well below March's reading of 8.3. Overall this is a pretty good housing report considering the present landscape in the lending industry.
Due to the events in the mortgage and housing sector, a number of economists believe the economy is moving toward a recession. My sources believe the Fed will soon begin to cut short-term interest rates in an effort to help the economy avoid this.
Bonds are trading in a sideways pattern along key levels of support.
to good reads:
Mad Dash for Housing Help
Gross VS. Bush & Econ
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