Today was a little messy. Rates lost all ground gained on Tuesday and the suspect reason in my opinion is profit takers as the data does not support the direction the market went.
Anyway as I often say the market will do what the market will do and even when it is in direct contradiction to data but eventually it regains its wisdom and follows the proper course.
This kind of lackluster data is potential benefit for Yellen to hold off (as I still predict) for raising rates this month but time will tell.
Here is today's data
MBA Mortgage Applications rose 1.20% last week following two consecutive weekly declines of 0.20% and 3.20% (+12.50% YoY). Purchases were unchanged following the prior week’s 7.70% advance (+28.60% YoY), Refinancing rose 3.50% following a 6.00% decline prior (+3.40% YoY), and the average interest rate for a Conventional 30-Year Conforming loan rose 2 bps to 4.140%. Wholesale Inventories fell 0.10% in October (consensus +0.20%) with a downward revision in September from 0.50% to 0.20%. Inventories of durable goods, such as autos and machinery, fell 0.10% following a 0.60% decline prior. Wholesale sales were flat in October (consensus 0.20%), following a rise of 0.50% in September. Treasuries are lower this morning despite the disappointing Wholesale data release and the curve has steepened