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Last week, several events drove the volatile market.  Early last week Japan's Mitsubishi Financial Bank announced it will purchase 10% to 20% of Morgan Stanley, saving the company from the same bankruptcy fate as Lehman Brothers. Then on Wednesday Warren Buffett announced he was investing $5 Billion into Goldman Sachs, which gave the market a vote of confidence it needed only to have Washington Mutual seized by regulators on Thursday. The demise of Washington Mutual represents the biggest US bank failure in history.

Perhaps the biggest news of last week was when both Fed Chairman Ben Bernanke and Treasury Secretary Henry Paulson headed for the hill to pitch the Government's bailout proposal to congress.

The week ahead, boasts several high impact reports, however, the reports that carry the most weight will come at the beginning and end of the week.  On Monday, the Core PCE report is due out, which as you may remember is the Fed's favorite gauge of inflation.  The busy week concludes with the all important Jobs Report for September which is due out on Friday.  Additionally, it appears that the House will vote on the Wall Street Bailout bill as soon as Monday and the Senate might schedule a vote as soon as Wednesday.

The bottom line: It is likely that rates will remain volatile, especially if the rhetoric surrounding the government's Wall Street Bailout bill heats up.  Couple with that both PCE and the Job's report being released and you have a recipe for volatility.