Bush is expected to make evil-doer Iraq his main topic, though he won't reveal a smoking gun or a war time-table -- themes already echoed Wednesday in his Missouri speech. Also, the flight bid grew after Russian sources said the U.S. would invade Iraq by the end of February.
On the data front, weekly retail sales figures gained 0.3-0.7%, the MBA Mortgage Market Index fell 4.7% in the week of January 17, thanks to a new year's drop in refinancings. In an ABC News/Money poll, Consumer Comfort fell to new nine-year new low of -27 from -21.
The March bond closed up 20/32 at 111-31, while the two-year note and 30-year bond spread held steady at +324 basis points, and the five-year area outperformed. Corporate/agency supply news was readily absorbed, with GE, Fannie, and Freddie on all deck with deals.