It was a veritable Saddam look-alike pageant on Iraqi TV, which could not be viewed in Baghdad, though markets took seriously a threat from the Information Minister who said that Iraq would use "unconventional" means to attack the Allies. Along with early pre-weekend selling exhaustion, this helped Treasuries rebound towards opening levels.
Meanwhile, the steep curve set fresh 11-year wides at +342 basis points, gaining 2 basis points, and continuing to benefit from the duality of near-term war risks and hopes for a positive outcome. The June bond closed 9/32 lower at 111-08, and in the end only the 2-year note closed in the green. One analytical firm went out on a limb for an intermeeting Fed cut call, but the market didn't follow, as Fed fund futures still imply only about 10-15% risk before the next meeting in May.