INSTANT VIEW: June durable goods orders better-than-expected

NEW YORK (Reuters) - New orders for long-lasting U.S. manufactured goods rose surprisingly in June on demand for metals, machinery, electrical equipment, and military needs, even though transportation orders were weak, a government report showed on Friday.

Durable goods orders were up 0.8 percent, after a revised 0.1 percent gain in May. When volatile transportation orders were excluded, orders climbed 2 percent last month, the sharpest rise since December. Orders for defense jumped 10.7 percent.

Non-defense capital goods excluding aircraft, viewed as a telling gauge of business spending, jumped 1.4 percent after a revised 0.1 percent decline in May.

COMMENTS:

MATTHEW MOORE, ECONOMIC STRATEGIST WITH BANC OF AMERICA SECURITIES, NEW YORK:

"The durable goods data were stronger than expected. But some of the categories that were up strongly seem to have had price increases, such as metals. As for the real impact on gross domestic product, that could be limited."

"So far bonds have reacted by strongly selling off. Yesterday, there was a bit of a bid for Treasuries amid some financial concerns and nothing major happened overnight. The housing bill is slowly passing through the Senate. All these things are detracting from the flight to quality trade today."

SHAUN OSBORNE, CHIEF CURRENCY STRATEIST AT TD SECURITIES IN TORONTO:

"The overall pattern of business investment in the U.S. is holding up pretty well. These numbers have been good for quite sometime, infact the underlying trend is somewhat firmer in those core numbers and not indicative of the levels that you would normally associate with a recession in the U.S."