Rate explodes to the upside and runs all bids out; falls back to open lower in New York. Buy dips is the preferred strategy in my view. Cross spreaders seen active on the sell side but volumes lighter.

Rate two-way but firm on dips; traders note bids still absorbing offers on the breaks. Traders note stops mixed with offers above the market also. Major support has held last Friday, any weakness likely to be bought hard. Profit-taking bids continue as well. Hook reversal from the toolbox still valid.

It's been a wild ride in the markets today from anyone's perspective; most notably the equities meltdown on Wall Street thanks to the panic surrounding the failure of Lehman Bros. and the potential failure of the insurance giant AIG. Speculation is raging with the "too big to fail" mentality so my question is "Why is the Fed involved?" Trader's note that almost lost in the day's action is Oil dropping below the psychological $100/BBL price level to finish the day in the $95 handle.