Market Wire - Dollar Rebounds After Durable Goods Orders Rise More than Expected

Durable goods orders and capital investment climbed more than expected last month, suggesting that falling consumer sentiment levels are not yet playing into broader consumption and investment patterns. Data from the Census Bureau indicated that new orders for manufactured goods meant to last more than three years increased $1.9 billion or 0.7 percent to $267.2 billion in May. Markets expected a 0.1 percent gain. 

Shipments increased increased $3.6 billion or 1.3 percent to $268.4 billion, and unfilled orders rose for a 21st consecutive month, up $3.7 billion or 0.3 percent to $1,109.8 billion. Inventories kept rising, supporting higher growth expectations. 

Core capital goods orders - a measure of non-defence capital goods excluding aircraft - rose 0.5 percent month-over-month after a revised 0.5 percent gain in April. Economists polled by the major data providers had expected a 0.2 percent increase.

Treasury yields climbed sharply in the minutes after the release, helping the dollar recover ground.