Treasury Action: yields sank to 2-week lows Treasury Action: yields sank to 2-week lows following the drop in the Markit services PMI to 4-month lows, which set off the bulls again in line with steep opening losses on Wall Street. The T-note yield probed to lows of 2.524%, well off Weds highs near 2.57% and close to the 2.50% psych area. That has kept a lid on the curve, which remains flat near +195 bp.
Today's U.S. reports Today's U.S. reports revealed an encouraging round of durable goods figures that lifted prospects for Q3 equipment spending, though inventories and shipments were lean, alongside a small initial claims bounce to a still-lean 293k that bodes well for September payroll growth that analysts peg at 200k. Analysts still assume 3.0% Q3 GDP growth, though with a firm 12% Q3 growth clip for equipment spending after a Q2 GDP growth boost to 4.4% from 4.2%, and analysts lifted our Q4 GDP growth estimate modestly to 3.5%.