We normally would not expect to see MBS hold steady when Durable Goods comes in at 1.3 versus a negative 0.4 expectation, but that is what is happening.  The bond markets' "pause" on what we'd normally assume would be a sharper sell-off is gaining confirmation by the minute with MBS still at 100-24.  Treasuries are a bit worse off, comparatively, than before with the 5 year down 10 ticks and the 10 year down 15.

This "pause" may be just that: a pause, in that we will soon be either losing further ground, or turning around.  Fundamentals already suggested a potentially down day, but with Durables so strong, a down day is certainly what SHOULD happen (but dame fortune hath doled out many a surprise of late!).

As always, we'll get you instant updates if even moderately significant changes occur.