It was an extremely ugly auction. And that's something nobody wants to see, not the Street and certainly not Treasury, given the amount of borrowing they have to do.

We're probably raising the endpoint for the Fed's easing target from 1.5 percent to at best 1.75 percent.

The market has every reason to be nervous.

We are still kind of stuck in this 4.67-4.77 percent range and I guess the reversal in oil is what kind of took a chunk out of equities and resumed a modest bid in bonds.

The real surprise is that none of the usual indirect bidders turned up. Maybe they were scared away by the jump in direct bidding (Wednesday).

The view that the Fed can take a measured approach is supported by the Greenspan testimony today -- he reiterated that the measured approach is really the right medicine here.

It's a good sign, but it's not the driving force in the market.

The market tried so hard to break 3.90 (percent), but the Europeans threw in a curve ball.

The market seemed to have it in their mind that the Fed had already changed their mind, that there was a change in policy to a more aggressive pace (of rate tightening), but that did not occur.