The huge supply of new Treasury paper coming to market in the next few weeks added to the gloom.

We have seen a good amount of domestic retail demand for Treasury paper all week.

And the supply of Treasury paper is far from burdensome.

"The fact is that the Street owns a lot of Treasury paper."

You can read all about it in the Treasury paper at:

But we do know it will add to the supply of Treasury paper.

Those who had sold Treasury paper short earlier in the day or week rushed to buy out of their positions.

"There is still a relatively short supply of Treasury paper, and we don't expect any significant increase for some time," he said.

The dollar is strong and the supply of Treasury paper will still be relatively tight.

At that time we expect long-term Treasury paper to look very attractive to investors.