The September bond closed up 11/32 at 103-00, but the cash bond gained after the close to +23/32. Safe-haven flow continued to underpin the front end of the Treasury curve as investors shunned Wall Street and scoff at Congressional hearings with Worldcom execs and cronies. The two-year note and 30-year bond curve widened out through +268 basis points after narrowing to +264 basis points on Friday's short-covering equity rally.
Despite the cautious tone evident in Treasuries today, there are few impediments to a test of the +272/275 basis points zone before a major double-top is at hand. The dollar finished heavily, shadowing stocks the entire session and crude oil fell about 75 cents to $26/barrel after the terror event risk bid was surrendered again. Bond-supportive energy declines took the CRB down over two points to 209.30.