A fall in the Philadelphia Fed index pared losses at noon. The uptick did not last long. There were heavy option related sales and then news reports of a capture of Al Qaeda's Zawahiri, then a retraction and more talk of a possible Bin Laden capture amid conflicting accounts, kept prices see-sawing. By the close, all benchmarks were solidly in the red.
Markets & Finance
Treasuries End Lower
Prices of U.S. Treasury issues ended lower Thursday amid volatile trading. There were sellers stacked up on the open. Retail sellers of spread product (making room for more corporate supply) and a selloff in European bonds following no statement from the ECB after the council meeting contributed to the pullback. Producer price and weekly jobless claims data were encouraging, also adding pressure to Treasuries. But then prices bounced on rate-lock unwinds, underscoring more price volatility.