More external verbal support for Argentina also boosted Latin America sentiment, taking some flight premium out of two-year bonds and five-year bonds. Initial jobless claims put a rosier tint on the jobless outlook for Friday, falling 23,000 to 346,000, but the data was surely distorted by auto retooling. June Factory Orders, however, tumbled 2.4% and the Chicago Fed's National Activity Index slid 1.02.
Stocks rallied after Intel repeated hope for a second half rebound in chip orders, but got dragged down into the earnings swamp in the end. September 10-year bonds broke below their 50-day moving average and trendline support at 105-16, while the September bond closed down 20/32 at 103-05. The two-year note and 30-year note spread narrowed modestly to +170 basis points, weathering early pressure.
The Bank of England cut rates, but the European Central Bank declined to follow.