Treasuries End Lower

Treasuries collapsed the day after the Fed held rates pat and signaled that policy would remain accommodative for some time to come. The 1.4% surge in July retail sales underlined the tenuous position the Fed's pre-commitment strategy, while export prices slipped 0.1% and business inventories gained only 0.1%. Leveraged accounts were only too happy to front-run the back up in yields, with the 10-year flogged back above 4.45% to 4.55%, triggering duration-related selling by the mortgage community.

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