Treasuries opened firmer despite another new low dollar after a Japanese Government report that showed intervention slipped in March, fueling speculations that future foreign-exchange intervention may become lighter. The bid held on the New York open amid mostly speculative and dealer buying.
Crazy Greenspan heart attack rumors were mostly ignored, but impacted prices enough to be annoying. Mortgage-related sales limited further price improvement early on. The mid-morning price surge, however, was in reaction to a weaker than expected Chicago PM report.
But late in the session, a misleading headline suggesting Fannie Mae may restate its earnings, in addition to month-end buying, rallied prices to the highs into the close.