Treasuries End Higher

Bonds advanced despite a rally in stocks as President Bush said his stimulus plan wouldn't cause yields to jump

Early stock losses on back of another wave of telecoms layoffs were reversed by midday, contributing to leveraged profit-taking on bonds after setting fresh contract highs. The curve first steepened sharply as two-year yields dipped below 2.7% and bond yields consolidated around 5.3%, but then gave much of this back as the "fright" bid waned.

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