Bonds Soar on Greenspan Remarks

The Fed chief endorsed a giant economic aid package that signaled recessionary worries, boosting bonds. Consumer confidence also fell harder than expected

After marching higher Monday, Treasuries extended gains Tuesday led by the front-end of the curve. Contradictory data set the early tone, but it was a reaction to secondhand remarks from Fed Chairman Greenspan that caused a whipsaw in prices. August existing home sales leapt 5.8% to a record 5.5 million unit annual pace, but the National Association of Realtors forecast a recession in Q3 and Q4, throwing cold water on the pre-attack results.

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