US durable goods orders rose 1.8% in September, pushing US bond yields higher

Strong performance in U.S. durable goods orders has pushed U.S. Treasury yields to reverse early declines and move higher, as the market awaits the Federal Reserve’s interest rate decision release tomorrow. The market expects that the Federal Open Market Committee (FOMC) will keep rates unchanged and resume rate hikes in December. U.S. durable goods orders rose by 1.8% in September, slightly above market expectations, mainly driven by growth in transportation equipment orders. The yield on the 10-year U.S. Treasury bond rose to 4.997% during the session, up from 4.987% on Monday; the yield on the 2-year Treasury bond climbed to 4.731%, up from 4.712% on Monday.