The market looks like it's stabilizing after selling off a little bit just after the sale.

The (Fed's) move was widely expected in the market.

The Federal Reserve has lowered the bar on what it would take for them to lower interest rates,

It's a fairly robust auction. The 46-odd percent is significantly more robust than average participation rate for last three three-year note auctions. Clearly, this continues to indicate there is fairly good overseas investor participation.

We think the Fed is trying to manage market expectations on the pace of economic recovery and on when the Fed is likely to shift its (monetary policy) bias to neutral.

longer-term outlook for the Fed and should keep the long bond on the soft side.

What you have to look at is what has been occurring in the foreign exchange markets. They (Bank of Japan) were rumored to be significant buyers on Friday and Monday, the (Treasury) market was bid up on Friday and Monday, so there's a very big risk that they've already put that money to work.