Initially, prices ground higher amid thin conditions and with the corporate calendar also winding down, the only news was the data. The CPI was soft while jobless claims rose. A pop followed, but was sold by dealers, speculative accounts, and hedge funds. Retail participation was muted.
Prices then spiked on an electronic trade error and misleading headlines by the Iraqi government giving the death toll from various government agencies since May, 2003. Prices pulled back, but the bid held. The headline Philly Fed index was soft, but the details were mixed. An initial rally ensued, but the bid pulled back then rallied again.