They lost the incentive to issue debt to buy mortgages during the end of January and the majority of February.
It brings it back to oil. As long as energy is making new highs, Treasuries will rally.
Traders normally try to use the supply story to push rates higher.
We're recommending investors stay short because we think there's more movement to the downside.
The Empire State report was strong ... and the selling pressures stayed there.
Dealers weren't that interested even though we had good indirect bidding.
People were thinking that, if the oil refineries take a direct hit, energy prices would shoot up and it would have a bigger impact on the economy.
We had a relief rally on the back end yesterday (Thursday), and it's carrying through to today.
We had a relief rally on the back end yesterday, and it's carrying through to today. Plus, with the refunding out of the way, it's lifted a weight off the market.
Now, with the inflation numbers, there are some worrying about Fed credibility, worried maybe that they're falling behind the curve.
