Treasuries and mortgage bonds are slightly lower this morning after negotiations over the debt ceiling stalled. The Treasury is scheduled to sell $35 billion of five-year debt today, the second of three auctions this week.
Treasuries opened down this morning with the expectation that the Durable Goods report would come in better than forecasted. The Durable Goods report showed an unexpected decline in orders. Following the morning economic reports, treasuries have bounced back slightly as the initial unemployment claims report came in higher than expected.