Treasuries Finish Higher on War Premium

Secretary of State Powell's warning that Iraq's weapons report was a material breach of its U.N. obligations ignited a Treasury rally

Treasuries surged dramatically higher Thursday, without any apparent reservations about Greenspan's speech tonight before the Economics Club of New York. The elevated war premium was the main evolving story, as first U.N. Chief Inspector Blix, and then Secretary of State Powell in no uncertain terms, expressed skepticism over Iraq's willingness to comply with resolution 1441.

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