August also marked the seventh straight month that business inventories were pared. The Daschle episode sparked a review of all mail and security on Capital Hill and could even disrupt the debate over the stimulus package, whose proposed size Treasury Secretary O'Neill termed "more than we'd like."
The middle of the curve outperformed, led by five-year notes that are now unlikely to be reopened prior the quarterly refunding. December bonds never looked back from 105-10 lows, even as stocks pared losses, closing up 21/32 at 106-01. The two-year note and 30-year bond curve held its steeper profile at +262 basis points. CRB fell over a point to new lows of 184.00 and JOC industrials set 15-year lows of 74.25. IBRD launched a $3 billion three-year global.