2017.06.2620:25:00UTC+00Treasury Yields Sink after Disappointing Durable-Goods Data

U.S. government bond prices rallied while yields retreated after disappointing durable goods order data gave further evidence that the Fed's so-called “transitory weakness” in inflation numbers is not temporary, lowering the odds of further monetary policy tightening this year.

Yield on the 10-year Treasury note fell 1.1 basis points to 2.135 percent, after climbing as high as 2.162 percent in earlier trading. The yield on the two-year note trimmed 0.4 bps to 1.336 percent, while the yield on the long bond or the 30-year bond lost 1.9 bps to 2.696 percent.

Orders of manufactured goods with a lifespan of over three years slid 1.1 percent in May, steeper than the 0.8 percent drop anticipated by economists. Other economic data failed to lift Treasury markets. The Chicago Fed's National Activity Index which measures economic activity and inflationary pressures slid to -0.26 from a positive reading of 0.57 in April. Meanwhile, capital goods orders, a measure of how willing enterprises are to invest in order to bolster production, fell 2 percent.