Treasuries Finish Solidly Higher

Risk aversion fueled demand for government bonds, amid harshening war rhetoric from the White House

Treasuries exploded out of the gate and scarcely looked back Friday, capping off a very bullish week. Given the dearth of data, extreme risk aversion was the main catalyst that dowsed stocks and bolstered Treasuries. Hardening war rhetoric from the Bush Administration, rumors of an early release of U.N. Inspector Blix's weapons findings and a series of terror-related arrests in Britian, Spain, and Italy whipped the markets into a safety frenzy.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.