Exchange traded funds that invest in U.S. Treasury bonds were under pressure Wednesday as yields rose after a surprisingly upbeat report on July durable goods orders.
The iShares Barclays 20+ Treasury Bond (NYSEArca: TLT) was down 2% after the Commerce Department said durable goods orders rose 4% in July, more than expected.
“We’re looking for more confirmation of weakness in the economy; when we don’t get it the Treasury bulls start scrambling,” said David Coard, head of fixed income sales and trading at Williams Capital, in a Reuters report.
“I started noticing Treasuries fade after the stronger-than-expected durable goods number,” Coard said. “That’s a number that doesn’t quite fit the script of those who are economic bears.”