Curve steepness peaked after Tuesday's FOMC at +180 basis points, but buyers of the two-year note and 30-year note spread came back in below +170 basis points as the week wore on. The September bond finished down 14/32 at 105-00 on the day, but well above 104-19 session lows, set when stock hit highs of +2-4%. Data offerings split the difference, with July durable goods down 0.6% and June revised down sharply to -2.6%. July New Home Sales nearly matched highs set back in March, at +950,000.
Dallas Fed Chief Economist Rosenblum said there was more room for cuts, but acknowledged a growing number worried hawks on the board. The Fed Senior Loan Officer Survey indicated that though the number of banks tightening their C&I lending standards continued to decline, it still remained an elevated level.