Looking at the September 10-year note this morning, we have seen a high of 139-25 and a low of 139-185. The whole treasury complex has seen a very narrow range for the past two weeks. The market is coiling which normally means we should see a breakout soon. Most markets have been in summer mode recently except the USD and the metals complex, the dollar hit a ten-year low yesterday. If this move should continue, we could see a major trend reversal in notes to the downside. Most traders view a sharply lower dollar as a sign of inflation which could rally rates and push prices lower in the treasuries. As stated earlier, the Fed has an announcement today at 1:00pm CSTl on rates. Most believe they will stay consistent with their continued dovish tone but if they hint at a hawkish tone, we could see some market volatility pick up. Traders should use rallies of 16-20 ticks in the notes to establish short position looking for continued weakness in the dollar and hence lower prices in treasuries.