--the
wild ride in the U.S Treasury market is set to continued this week,
with investors torn between worrying about strong growth and higher inflation and fretting about subprime-mortgage woes.
--Drivers of Treasury
Montary policy:
--Some LT investors are keen on Treasurys because they are betting the U.S. economy will eventually slow, forcing the Fed to cut rates
Supply:
--Some cite less supply: with the governments' deficit outlook improving, issuance could slow, making U.S. government bonds more attractive.
Technical: flight to quality
--As the subprime story stay upfront and center in the headlines, we whould continue to see highe daily volatitlity.
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