Factory orders increased 0.4% month-over-month in April (consensus 0.8%) following a downwardly revised 0.6% increase (from 0.9%) in March. Shipments of manufactured goods decreased 0.4% month-over-month after declining 0.6% in March.
The key takeaway from the report is that business spending picked up nicely from March.
Treasury yields took a turn lower in response to the data.
The 2-yr note yield, at 4.54% shortly before the release, is down five basis points to 4.46%.
The 10-yr note yield, at 3.74% before the data, is down two basis points to 3.67%.