Treasuries lurched higher to start on Wednesday, led by the front-end of the yield curve, but stalled out and relinquished much of their hard-won gains by the close of the session.
The rumor mill ground out a ton of grist on policy and event risk that supported prices early on, but a late rebound in stocks, thanks to some cheerleading from Fed Chairman Alan Greenspan on tech investment and productivity sapped strength in the end. A Washington-based advisor allegedly claimed the Fed should ease a half point by year-end. Bush gave another ultimatum to the U.N. The Fed Beige Book report was pretty somber, but in-line with expectations. St. Louis Fed's Poole comments roamed the spectrum from pessimism to optimism on the economy.