Brian Bethune Underlying Quotations

There are reports of solid underlying demand for 30-year bonds from pension funds and insurance companies.

Activity in the manufacturing sector picked up early in the second quarter, in line with strong underlying fundamentals in the economy and stronger overseas demand. We can look forward to solid overall output growth in the second quarter of 2006.

The major markets overseas - Europe, Japan and Asia - have fairly solid underlying momentum. Japan is certainly improving and Europe is more like the Queen Elizabeth slowly turning around.