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Market Brief – Monday 9/27/21

Stocks fell and Treasury yields rose in overnight trading as investors buy into the Fed’s ability to hit and maintain their inflation targets. Stocks were flat in early trading while Treasury yields fell in early trading.

Durable goods new orders rose +1.8% in August as non-defense aircraft and parts orders rose sharply and slowed to +16.8% from this time last year. Excluding food and energy, core durable goods new orders rose +0.2% in August.

Today’s $60 billion 2-year Treasury Note auction was met with weak demand as foreign bidders took 45.3% of the auction and domestic bidders took 21.7% of the auction, leaving securities dealers with 33.0% or $19.761 billion. Treasury yields rose slightly following the auction.

Today’s $61 billion 5-year Treasury Note auction was met with decent demand as foreign bidders took 54.3% of the auction and domestic bidders took 20.2% of the auction, leaving securities dealers with 35.5% or $15.529 billion. Treasury yields fell slightly following the auction.

Stocks closed lower on the day and Treasury yields a bit higher after buyers put a halt to rising yields.