Take That : Bonds spent the day offered following the Fed's announcement they would work out a way to support the commercial paper market to aid with credit issues. The market got clocked immediately before clawing its way back some with most maturities swinging about 15 basis points on the day. The Fed's is being applauded for the CPFF plan, another alphabet city entrant, as they expand what they will take to secure short term flows on top of the numerous other facilities now running. Globally bonds were generally lower as other policy groups are making similar moves to keep markets afloat and to avoid drowning in their own lending paranoia. Late session position squaring held the 2-yr under and 10-yrs got bought. The day ahead is another data lite session with pending home sales are expected to fall less precipitously then they did in Jul, although remain negatives. Unwinds sent the curve flatter, but the 2-10-yr yield spread headed out near unch at 202 while the 3-mo-10-yr held flattened.Consumer credit fell in Aug by -$7.9B, well off economists' estimates of a $5B increase, as consumers continue to see the effects of tightened credit. As for spending, will likely make like the banks and hoard cash as they can. The buck was offered quietly on the euro in response to its overbought position. After working to get some back off the yen, the dollar was dragged lower the last half of the session to head out through 101.50. Gold is holding near its best levels with spot at 885.90 (+26.15) as value remains the day's word while crude headed out with a bid at 90.06 (+2.56). Wed's events may continue to be overshadowed by credit issues with Aug pending home sales hitting (10), while Philly Fed's Plosser will hit the mic early on policy expectations (7:45)