Monday, August 4, 2008

After Early Dip, Treasury Buying Spree Develops

Good liquidity, nice smooth moves this morning. Despite fresh data this morning showing inflation ramping higher, the affect on treasury yields was very short-term. The market simply shrugged off the inflation concerns, and treasury buying resumed with renewed vigor. With the weak economy, the Fed and the market seem to expect inflation to gradually moderate. This is a good day for buying treasuries!