Treasuries Finish Lower
Treasuries extended their post-payrolls rally into Monday morning, prodded by a "fast money" flows and Bin Laden rumors, but the bid soon evaporated and prices finished about where they began -- in the red. After last week's flood of friendly Fedspeak and data, there was little on either front. This held the market hostage to intraday forces, rumors and supply. Starting on the defensive after President Bush requested $87 billion in extra funding for Iraq reconstruction, Treasuries quickly turned higher midday thanks to leveraged demand and an ABC News report that Bin Laden had been cornered in a "40 mile" corridor in Pakistan. Risk of a retaliatory terror strike around the anniversary of September 11, however, was apparently behind the raised risk aversion.
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