Two-year yields dipped back below 4.25%, while prices climbed most sharply on bills. In contrast the June bond collapsed in on itself all the way down to nearly par before settling just in the red at 100-16. Some said declining fiscal visibility after the rise of the budget deficit in March and comments from Treasury Secretary O'Neill late Thursday interpreted as commuting the death sentence on the bond added to 2s/30s steepening which pressed to fresh wides of +158 basis points. Dallas Fed's McTeer warned of a return to excessive pessimism in the equity markets, but said the Fed action this week should help shore up consumer sentiment. Investment grade and junk spreads continued to draw strength from hopes of a second half recovery, though stocks closed in the red.