Not Expecting Fireworks From The Fed

Bonds had a mixed reaction to this morning's Durable Goods data with stronger internals offsetting a weaker headline. Sellers were in control for most of the AM hours, but momentum shifted with the 7yr Treasury auction. All in all, it was a solid showing in spite of the rebound in equities markets (something we only care about today because it was a huge consideration yesterday). Looking ahead, tomorrow's only notable agenda item is the Powell press conference at 2:30pm. The announcement itself can't really offer any tradeable news.  Even Powell would be hard pressed to shake things up too much considering the mildly positive cue from inflation data and the ongoing policy uncertainty as a counterbalance.  That said, one can never truly rule out a volatile reaction to a Powell presser, but the odds are certainly lower this time around.