Treasuries Finish Mostly Higher

Two-year notes rose after an auction sale and a dovish tone from Fed's Santomero

The penultimate trading session before the long holiday weekend was marked by lethargy and fatigue on Wednesday, with more dovish Fedspeak and issuance the main impetus behind corrective curve steepening. Modest bond buying featured prior to the launch of the upsized $7.3 billion Morgan Stanley multi-tranche deal and housing data, but soon fizzled after new home sales rose 5.3% and the Chicago Fed's National Activity index rebounded into positive territory.

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