Treasuries Finish Higher

Treasuries enjoyed strong gains on the back of Greenspan's dovish comments, and rumors of global interest-rate cuts

The manic-depressive mood swings in the Treasury market Tuesday proved to be rule again, rather than the exception. The pretext for strong gains today was a monetary conference in Berlin, which gathered the chieftains of the major monetary policy clans in person and via video. The white-haired ECB chief Duisenberg hinted at "significant" inflation declines ahead and the bespeckled Fed chief Greenspan put "corrosive" deflation at the top of the agenda for the 24-25 July FOMC.

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