A wild first half, Whats next?

Mortgage bond prices remain slightly weaker this morning following the data.

Durable goods orders rose 1.1%, higher than the expected 0.4% increase. However****, ex-transportation figures rose 0.4%, lower than the expected 0.7% increase. Overall the data was mixed and the market swung back and forth as it digested it. At the open, the initial reaction was slightly negative though only within a narrow range. Stocks seemed to like the data with the DOW up 47 points at 10am et PRICING.

News out of the euro zone was good for US debt as German Chancellor Merkel rejected a proposal to "share" the euro zone debt through bonds. Expect more up and down trading tied to Europe as their situation remains in flux.

We have a 5Y Treasury note auction this afternoon.