Rates have fallen over the past month, but keep trying to rally back above the 200-day moving average. Its been a tough layer to break through and each time rates have been turned higher after making a run. Today rates made a run...traders are likely emboldened by the comments made by Ben Bernanke over the weekend. Between the Fed Chairmans comments and the troubles in Europe rates did improve today. I am still cautious to say things will get better.

My take on the market is that the economy is improving (albeit slowly) and with the Fed and governement in borrower at all costs we will see some inflation in the not so far off future. I am sure there are much smarter folks than me on Wallstreet that see the same issues and its going to be tough to see another big rally in bonds and thus I dont see rates making another run on the low rates we saw in October.

That being said...rates will likely go lower and you can thank me later. :)