U.S. Treasury securities showed surprising strength yesterday in early trading when a strong durable goods report failed to spark selling, but prices faltered later in the day when players realized they paid too much at the Treasury's five-year note auction.

Treasury cash and futures prices dipped but then recovered quickly in the morning after the Commerce Department reported that manufacturers' new orders for durable goods rose 6% in August. The consensus forecast was for a gain of about 4%.

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