Short covering and several deal pricings temporarily stalled a further selloff, but prices then tanked on the dollar surge. A Reuters article, regarding yet another European Union lawmaker calling for an European Central Bank interest rate cut, began the U.S. dollar's move up. Comments from Greenspan - "current federal funds rate accommodative at some point will have to rise" - extended losses into the close. From Informa Global Markets
Markets & Finance
Treasuries opened lower and then fell further. Wall Street Journal articles suggesting large job creations, position adjusting ahead of Greenspan, Indonesian Central Bank intervention to defend the Rupiah which spurred Treasury sales, poor JGB auction, and Berry article saying large deficits portend higher long term rates nearer than Greenspan thinks, underpinned the opening selloff.