This gain in Factory Orders may be the largest since 7/2011, but it's a +1.8% gain vs a +1.7% consensus on a mid-tier economic release. Verdict: relative non-event. Stocks fell a bit, and 10yr yields came in a bit, but the reaction has already played out in limited volume. Back to trading headlines....

From the Census Bureau:
New orders for manufactured goods in November, up following two consecutive monthly decreases, increased $8.2 billion or 1.8 percent to $459.2 billion, the U.S. Census Bureau reported today. This followed a 0.2 percent October decrease. Excluding transportation, new orders increased 0.3 percent.

Shipments, up six consecutive months, increased $0.1 billion to $455.0 billion. This followed a 0.5 percent October increase.

Unfilled orders, up nineteen of the last twenty months, increased $11.1 billion or 1.3 percent to $898.3 billion. This followed a 0.4 percent October increase. The unfilled orders-to-shipments ratio was 6.16, up from 6.07 in October.

Inventories, up twenty five of the last twenty six months, increased $2.8 billion or 0.5 percent to $609.8 billion. This was at the highest level since the series was first published on a NAICS basis in 1992 and followed a 0.9 percent October increase. The inventories-toshipments ratio was 1.34, up from 1.33 in October.

As far as overnight sessions go, last night's was quiet, and nothing much by way of tradeable data came across since the German Bund Auction gave both EU and Domestic Benchmarks a boost before the NY Session began. Things has been relatively flat until a recent hiccup bumped 10yr yields up about a bp or two. It doesn't look like there's much follow through on this so far, but it bears mentioning as it introduces two potential market movers to the morning mix.

The first of the two contributors to the "hiccup" came in the form of a few wires relating to Hungarian officials statement that the nation would now play ball with the IMF/EU after some general defiance earlier this week. That little spat helped bond markets, and today's headlines are perhaps some form of resolution to concerns that Hungary wouldn't cooperate with the IMF/EU to ensure their central bank is adequately funded.

The second contributor to the spike in 10yr yields may be a rumor that the EIB (European Investment Bank) is said to be preparing a new 3 year bond denominated in British Pounds Sterling (as opposed to, well.... you know... the other currency that the "Euro" zone uses).

10yr yields rose from 1.945 to 1.965 and have fallen back down to around 1.96 currently. MBS are still in the green with Fannie 3.5's up 2 ticks at 102-28--no major drama there. Factory Orders data coming up in about 10 minutes...