Steady selling in Treasuries kept the yield, which moves in the opposite direction of price, on the benchmark 10-year note at its highest levels since June 2004. This has forced mortgage lenders, who base their rates on Treasury yields, to edge them up on many popular products.

Economic reports, mixed though they were, had little effect on the bond markets, which were in selling mode long before the data were released. The University of Michigan's final consumer sentiment survey for February fell to 86.7 from 91.2 at the end of January. Satisfaction with both present and future conditions was down, with rising gas prices cited as one of the main problems. The decline was not totally unexpected, as the preliminary survey, taken two weeks ago, showed a dip to 87.4.

The Institute for Supply Management, or ISM, released the February index for the service sector, which jumped to 60.1. This was greater than the 58.2 that was forecast, and was well above the 56.8 posted in January. Like the ISM index on manufacturing, new orders and employment were up and prices paid were down - good news for inflation watchers. Ten of the 17 sectors surveyed reported increases, led by mining, insurance and communications. Those lowest on the totem pole were agriculture, wholesale trade and entertainment.

Wall Street rides the roller coaster

Stocks opened down, and then rose, only to close in negative territory. Intel lowered its first-quarter revenue forecast sending the markets down at opening. The world's biggest manufacturer of semiconductors cited weaker demand for chips and a slight loss in market share as reasons for the downward revision. Intel has had a tough time this year, making its way through at least nine downgrades.

In addition, the big jump in interest rates has investors concerned that higher rates will slow the economy and dig into corporate profits. And three days of rising oil prices have put additional pressure on the markets.

Once Wall Street determined that Intel's problems were specific to that company and not to the sector in general, the tides turned. The three major indexes moved into positive territory and remained there until the last hour of trading.

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