12 Quotes by Bill Davison

Measured could go away, ... Greenspan wants the yield on the 10-year Treasury to go up because usually, long rates are not this low until late in a tightening cycle. The bond market may be underestimating how much more tightening needs to be done.

Bush has insured a smooth transition with the least amount of disruption to Fed policy, ... That's what the market needed.

When you look back to what we had before Greenspan, we had a Fed that was much more controlled with information. He brought so much transparency to the job.

There's a joke in the fixed income world that the PPI and CPI excluding everything is zero. But you can't really discount everything, ... I'm not trying to be alarmist but the market is underestimating the inflation risk in the economy.

The bond market has been focused on looking for nuggets of weakness. But the payroll number could tip things the other way. Another strong number could start to change people's minds.

So far, markets are comfortable with him, but it's still early. We'll have to see how passionate he is about fighting inflation.

The jobs numbers will be less reliable. If they are stronger, people will say it's because people had to hire more workers because of Katrina and it's only temporary. And if it's weaker people will also say that it's Katrina-related, ... The Fed's job has just gotten harder.

The correction somewhat mutes inflation concerns. The market is looking in one direction today and that's for slower growth.

Inflation is still something to keep an eye on. The market has priced in a slowdown but if we do get a surprise on payroll day, we could see a sell-off in bonds.