Bond markets opened stronger after a quiet night of trading but later sold off due to robust Durable Goods data. Mortgage-backed securities (MBS) dropped by 8 bps, while stocks rose by 13.08 points, driven by strong consumer spending. Durable Goods exceeded expectations at 1.7 compared to a forecast of -1.0, indicating market strength. New Home Sales also outperformed, reaching 763k versus a forecast of 675k, while Consumer Confidence improved to 109.7 from a forecasted 104.0. Additionally, the Case-Shiller Home Price Index reported a slight annual decrease of 0.2% in April, with significant declines in certain metropolitan areas. Median new home prices fell 7.6% YoY to $416,300, prompting builders to focus on more affordable properties. Consumer sentiment improved in June, with the present situation index at 155 and inflation expectations falling to 6%. The ECB announced a rate hike plan for July, while the US faced challenges issuing shorter-term Treasuries due to the debt ceiling increase. Overall, data on Durable Goods, Consumer Confidence, and New Home Sales impacted the market, resulting in a sell-off. MBS ended down by 17 bps, while stocks surged by 50 points.

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