The market is making a concession for ongoing strong data.
In the end, the Fed's on hold until there's inflation and significant job creation.
There is the discussion about central banks and their involvement -- many think a dollar bounce takes something away from auctions.
Nobody feels they have to buy the market at higher prices, at least not yet. Stocks have had a nice recovery, they're up overseas, the dollar is weaker -- so people are saying there's no real reason to buy the bond market.
Pretty confident the market is going to break to the upside. I think the data is going to be pretty friendly this week.
Durable goods was June data, and what we really care about is July data, ... There is also this bearish impulse to the market, because people are looking ahead to next week.
There's still an argument about where the data is really going to end up, and whether the sugar high of quarter three is going to burn off, and how fast.
Friday's ISM was hot and restarted the bearish energy in the system.
Indirect bidders in the two-year sales have averaged 38 percent or so the past seven, eight auctions; anything less than that today will feed people's fears about foreign demand waning.
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