Treasuriesrallied at open as a response to further geopolitical tensions with North Korea over the weekend. The rally was also supported by dovish comments from FedBrainard who spoke earlier this morning on Economic Outlook and Monetary Policy. FedBrainard stated that the U.S. central bank needs to be cautious about tightening policy further due to their lack of confidence that inflation could reach their target. There are two other Fed speakers today including FedKashkari who will speak at the University of Minnesota at 9:30 AM (PT), and FedKaplan will speak in Dallas at 4:00 PM (PT).
Our shortened economic calendar week kicked off with the Factory Orders for July which fell 3.30% as expected following an upwardly revised 3.20% rise in June. Factory Orders excluding Transportation rose 0.50% following an upwardly revised 0.10% rise in June. We also received the Durable Goods Orders for July, which fell 6.80% versus a 2.90% drop per consensus. Durables excluding Transportation rose 0.60% versus a 0.50% rise prior. Lastly, we received the Capital Goods Orders Nondefense which rose 1.00% versus a 0.40% increase prior. Capital Goods Shipments Ex Air rose 1.20% versus a 1.00% increase prior.
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