While both US Treasury notes and bonds and mortgage-backed securities (MBS) both opened better, the spread between US Treasuries and the MBS continues to widen.  The Dow is currently down approx 100 points as investors prepare for what is expected to be a poor July Existing Home Sales report from the National Association of Realtors.  The current debate is among analysts who believe we are set for a double dip recession and deflation and those who believe that fears of a double dip are overblown.  Fund managers and individual investors continue to plow money into Treasuries in a "flight to safety" trade, but some analysts like Marc Faber, editor & publisher of The Gloom, Boom & Doom Report, continue to warn of a bubble in bonds.  Bonds move in an inverse relationship to rate/yield.