People overall feel a little bit better about what they're seeing in the economy, so more people are leaning towards a 25-basis-point cut as opposed to 50,

People are clearly betting on an aggressive cut.

A lot of people are going to be watching the employment report for evidence of whether the economy has hit escape velocity.

The economy is picking up. You have a lot more people looking for work. That's a good sign.

Obviously the data today was very supportive of bonds. The unemployment report caught everyone by surprise. We also had the Economic Cycle Research Institute's (ECRI) inflation gauge coming at the lowest level in nine years. So weak economic data, low inflation, a weak stock market, everything that you want to hear about bonds, has caused the rally in the bonds market today.

Oil prices, I think, are something to keep an eye on. So far, they have not influenced the inflation data to the point where we think it should be too troubling to the bond market but if prices go a little higher, if they stay up here. I think it's something we'll have to keep an eye on.