Rates inched higher Wednesday, giving back yesterday’s gains. Trading remained volatile as investors continued to focus on Europe. This morning, optimism that European leaders will agree on a comprehensive aid package lifted stocks and hurt mortgage-backed securities. In economic news, Durable Goods Orders fell by 0.8%, a bit less than expected. Excluding the transportation component, Durable Orders rose 1.7%, beating forecast. New Home Sales increased by 5.7% in September to 313,000 annual units. Unit sales of 300,000 had been expected. Results from today’s 5-year Treasury auction will be released at 1:00 PM.