The contract threw in the towel on an alleged stabilization in stocks, breaking below 105-14/13 congestion then tumbling below 105 for 1-5/32 loss on the day. Other than a classic Friday technical meltdown and some rumors of trade error (2,000 June bonds sold vs. 200), and stop hunting in the low 105's, dealers were just plain "tired."
In retrospect, the market was clearly was clearly saturated; there was some talk of a CMB $1 billion bid list circulating and much corporate and agency issuance was delivered to the street this week.
Fed Chairman Greenspan gave a recap of his Jan. 25 budget/tax cut phase-in Senate speech to the House Budget Committee. He seemed to get a little wry enjoyment in tweaking the market, indicating he was ambiguous on timing intentionally on Wednesday.
Final February University of Michigan consumer sentiment was also revised up slightly from five-year lows.
Equities recovered from Oracle earnings fright, but closed mixed.