Treasuries End Mixed

Friday's payroll data offset safety bids

Treasuries opened higher on a safety bid amid terror concerns, but prices fell as traders concentrated on Friday's stronger-than-expected payrolls report. The front end led the move as stocks continued to tank. Retail flows were limited to curve steepening bets, while hedge funds covered shorts as prices appeared to have stabilized. Asset reallocations by balance funds into bonds from stocks were also talked.

In addition, an article by John Novak in the Chicago Sun Times caught some attention. The article suggested the Bush administration is satisfied with the Fed's alert of modest interest rate hikes -- 25 basis points ahead of the election, another 25 points after, then a 2% Fed funds rate by early next year.