There is a long-term favorable backdrop to long-term securities in demand from the pension industry.
Of the two main challenges for the Fed, a slight slip in activity versus a pick-up in inflation, we think insuring long- term price stability is the more pressing issue.
The market is building a supply concession. The market is not doing much more than supply-based trade.
As we look forward, and try to get a pulse on the economy, there's going to be a significant amount of data pollution that's going to make it very difficult for us.
There are very, very strong opinions on both sides of the fence on what the Fed is going or not going to do. The bottom line is with such diversity of opinions that the market is going to be choppy and volatile.
The trade of the week is trying to be short in front of what's expected to be a strong payrolls report and in anticipation of the refunding supply next week.
The street is building in a small concession to take down today's supply. There are going to be fewer meaningful changes in positions ahead of tomorrow.