Earlier in the session, Treasuries fell after the Bank of Japan intervened again after dollar/yen broke 109. But as the dollar/yen rose only modestly, the dollar surged though vs. other major currencies. Prices then ground lower on rumors that Osama Bin Laden may have been among the 24 Al Qaeda killed by Pakistani troops. But the rumor was denied and further losses stemmed on the reports of an FBI probe in the Feb. 13 University of Michigan consumer sentiment survey.
Prices then reversed, soaring as the FOMC was concerned about labor and not as upbeat on the economy as had been feared. The curve flattened as retail lifted long paper, but sold the front end. From Informa Global Markets