Attention will now shift to any surprises hidden in tomorrow's second-quarter GDP report and benchmark revisions, with growth seen at a more tempered 2.3-2.5% pace. Bush signed off on corporate accounting legislation and this may have provided some solace to stocks, while there was also a CNN report that Bin Laden's body guards had been incarcerated in Guantanamo, implying that he was "probably" dead.
The Sep bond closed up 3/32 at 104-23, though the rest of the maturities closed under water. The 2s-30s spread accordingly narrowed back below +300bp for a loss of 2 bp. The dollar padded overnight gains, helped by the more benign equity environment. From Standard & Poor's Global Markets