Salient to Investors:

Fidelity Investments and Pimco said the fiscal cliff and Fed bond purchases will drive demand for debt.

Roger Bridges at Tyndall Investment Mgmt we’re back into political games – if we continue this policy uncertainty, then the economy will fall and bonds will rally.

Bill Irving at Fidelity said people own government bonds because they do well in a flight to quality when equities fall. Irving said interest rates will stay low for the foreseeable future due to the fiscal cliff, high unemployment, and Fed monetary policy keeping downward pressure on rates.

Bill Gross at Pimco said 10-yr notes have a bid based upon the Bernanke expectation for easy money as far as the eye can see, and finding that middle ground for the fiscal cliff will be very difficult.

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