The curve initially steepened to +268 basis points, but closed unchanged at +265 basis points. New Home sales for September fell 1.4% from sharp downwardly revised August data. University of Michigan consumer sentiment dipped to 82.7 from 83.4, but not as deeply as feared. A Conference Board survey found over 52% of Americans believed September 11 pushed the U.S. into recession, while Dallas Fed's McTeer confessed he expected negative growth in Q3 and Q4. Fed's Greenspan spoke on economic education, but not on policy.
Late news of Anthrax spores found in a Supreme Court off-site mailroom helped secure the usual Friday closing bond bid while stocks finished mixed.