This is a good level to buy Treasuries. We're looking for opportunities to extend the duration of our holdings by buying longer-term notes.

We are planning to buy Treasuries and the consumer price report reinforced our views that U.S. notes will rally. With the Fed likely to raise rates again, that will keep inflation well contained.

Foreign central banks will continue to buy Treasuries, so I am a little bullish. Yields may drop below 4.30 percent in the short-term.

We are expecting to see some correction in the housing market after previously robust data. That will put some downside pressure on yields, which means the curve may invert some more.

Ten-year Treasuries are very close to the yield level at which we plan to buy. We prefer the 10-year notes to shorter-term Treasuries because inflation is less of a concern compared to rising interest rates.

Here’s a little thought experiment. Imagine that, on September 11, 2001, when the Twin Towers came down, the President of the United States was not George W. Bush, but Ann Coulter. What would have happened then? On September 12, President Coulter would have ordered the US military forces to drop 35 nuclear bombs throughout the Middle East, killing all of our actual and potential enemy combatants, and their wives and children. On September 13, the war would have been over and won, without a single American life lost.