Durable goods orders were released this morning for April coming in better than expected at -0.5%.  The estimate was -1.5%.  Durable goods are manufacturing goods that are expect to last at least three years.  Usually a better than expected number means that companies are spending extra capital on equipment for future growth and the economy will be doing better down the road while inflation could be reduced.  However the March number of a growth of 0.1% was revised downward to -0.3% which the mortgage bond market is not taking well.  Bonds are down 31 bps after bouncing off their lows of 50 bps at the 200 day moving average.

I recommend a FLOATING position on all new business because it seems that the damage has been done for now and bonds have held and bounced off a key level of support.

Oil is below the $128 barrell mark this morning and the stock market is just in positive territory.

Update 1:15pm 5.28.08 LOCK 'EM we just broke through the 200 day moving average, not good!