We're seeing liquidation of the 30-year sector to jump back into the two-year sector. Looking at the market overall, a lot of the curve inversion might be past us.

I think (investors) are going to be looking at how the market has performed and what the sector rankings are. I think that some of the recent gains that have come to a bit of a stall are probably a function of...the notion that once people come back from Labor Day, we should have a pretty good rally so they just wanted to get positioned ahead of that.

The focus will be on payrolls, and the market is looking for a significant fall as we are still seeing the effects from Hurricane Katrina. It is worth holding long bond positions.

This liquidation has been so sharp, so severe, not just in this last quarter, but over the past year, that even with a modest pickup in demand, production is almost bound to increase as we move through the balance of this year.

It would appear that the market is simply looking ahead to the tightness looming for later in the year.

I trust only you and the dark always to look at me so honestly.