Bonds End Slightly Underwater

Treasuries weakened after the Dow made a late-afternoon reversal

Treasuries hit full stride early on Friday amid spillover from stock weakness following Microsoft's mixed results and another wave of tech earnings short-falls. The flight from stocks and some central bank buying in the intermediate maturities set a positive early mood. The September bond ran out of gas though, closing down 4/32 at 103-04 after topping out at 103-20 for the week, but it attracted good bid interest below 103 to leave a constructive tone ahead.

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