Treasuries Finish Stronger

Treasury prices rose amid speculation that the war in Iraq will drag on, and stall U.S. economic growth

Treasuries rounded out the week Friday on a strong footing, as a series of alarming developments on the terror and war fronts kept safety at a premium. The curve accordingly finished at its steepest slope in over a decade. It's not that things were going poorly on the battle front, but rather a reflection of the enormity of the undertaking in Iraq. Indeed, other events peppered the session, whether it was the spreading Asian virus, front-running month-end demand, drunks mistaken for terrorists on a New York bridge, fears about Iraqi chemical weapons, or Defense Secretary Rumsfeld's finger-wagging at Iran and Syria. Three men were arrested after leaving suspicious packages on the Williamsburg Bridge, but the incident was quickly ruled out as terror-related after a breathalizer test.

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