Prices of Treasury securities were mixed in light trading, with short-term maturities basically unchanged.

"And a tightening to that level has already been fully priced into short-term maturities."

If interest rates rise, short-term maturities will be the best bet because their prices will fall the least.

Still, most intermediate and short-term maturities improved a bit.

Prices of two-year notes and other short-term maturities benefited from considerable short covering.

Longer-term issues moved lower, while short-term maturities were little changed.

That view was reflected in prices of short-term maturities.

But prices of short-term maturities rose, benefiting from investors fleeing the turmoil in the stock market for more security.

We think that over the next several months yields on short-term maturities could get down to the 6.5 percent to 7 percent range.

Much of the activity is taking place among short-term maturities.