It would appear that the market is simply looking ahead to the tightness looming for later in the year.

The fact is we have massively underestimated the impact of investment fund flows into the sector.

It is unlikely that the physical market will suddenly assume a lead role. This means that price rises will again be strongly driven by investors.

Over the 2004-05 interval, looming bond market perils appear to pose the most serious challenges for [leveraged] consumers and property markets -- possibly even resulting in a new deflation scare.

Over the 2004-05 interval, looming bond market perils appear to pose the most serious challenges for [leveraged] consumers and property markets -- possibly even resulting in a new deflation scare,

I think the market has gone ahead of itself and I am looking for this market to pull back somewhere between five and six percent within the next six to seven weeks.