Investors decided Friday they overreacted to bad inflation news earlier in the week, and, buoyed by favorable housing numbers, regained a big chunk of lost ground.

The 30-year bond finished the day up 29/32, to yield 7.95%. The bond closed the day Thursday above 8% for the first time in five weeks, after a 1 5/8 point sell-off on news that the consumer price index had jumped 0.4% in September, instead of the 0.2% the market expected.

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