There's no sign of the economy slowing down and Fed officials should continue to be hawkish. It's a misconception that long-term yields will fall further.

We are expecting the Treasury market to continue to weaken in the next few months. There are no signs the economy is slowing and that means the Fed can continue hiking rates. This is not the time to be buying bonds.

The curve inversion is just a temporary phenomenon. It cannot last as the Fed raises rates.

From the economic viewpoint, Treasury yields are too low. We are expecting robust growth in the first quarter and that will lead to a correction in the bond market.

We don't see the Fed stopping before the second half of 2006. We are recommending investors sell Treasuries before yields move even higher.

If the Fed is on the warpath with an eye to slowing the economy and trying to blunt inflation before it becomes a problem, by slowing the economy the Fed is hoping to address any imbalances between supply and demand, specifically for labor. It feels to me like the market is starting to look beyond the impact of the Fed and setting ourselves up for a second half where the wrestling match will not be between interest rates and valuations but rather between earnings and valuations.