The September bond cracked higher through 103-08 on Q2 GDP data, which cut Q1 gains in half at +0.7% along side very tame PCE price indicators. New home sales gained 1.7%, but only from lowered back month revisions and U. Michigan sentiment disappointed. A couple European shops subsequently led the charge up to the 104-handle, but a U.S. house stalled the move at 103-30 and prices settled +19/32 at 103-15. The curve finished the day near Thursday wides of +167bp, as 2-year notes outperformed -- the price hitting par and yield sliding below 3.86%.
Dealers quickly shifted focus towards next week's quarterly refunding and month-end which may have begun to generate some price concessions. But this week's corporate issuance flood was readily absorbed and payrolls at the back end of next week don't seem much a threat to bulls who may continue to target 104-10 if 104 gives way.