"Good" news, "Bad" reaction, take two
* Durable goods orders, excluding transportation, dropped 1.1% in November vs. expectations for a gain of 1%.
* The gains in November personal income and spending were slightly below expectations, by 0.1% each, according to Bloomberg.
* The core personal consumption expenditures price index was flat on the month, vs. forecasts for a 0.1% gain. That brought the YOY PCE core inflation rate down to 2.2% from 2.3% in November.
You might expect bonds to rally on this news. But you'd be wrong. Long bond futures were recently down 22/32, in fact, a fairly large move. Ten-year note yields shot up more than 6 basis points.
I don't want to make too much of this given that the markets are thin as a reed this time of year. But it is worth noting the odd reaction to arguably bullish data.