Treasuries ended notably lower, hammered by what was perceived as upbeat comments by the Fed's Broaddus. Treasuries never were able to get out of the red after falling overnight on the capture of Saddam Hussein. That sell-off was pared ahead of the New York open, but a better-than-expected Empire State survey (37.4, vs. the expected 33.6) brought out more selling. But there was little follow-through to the sell side, and guys who had shorted in the hole were forced to cover.
There was decent interest from hedge funds and commodity traders, which triggered buy stops in the eurodollar pit. Stocks rallied, putting some pressure on the short end, and Treasuries remained in a range between the weight of higher stocks and a fear of being short.
But then Broaddus came out suggesting the economy would do better, which brought out a big seller of 10-year notes and the belly got slammed.