Rate Cuts ???

On the back of the most recent weak economic numbers ( GDP only 2.6% in 2Q , Durable Goods Orders -0.5% in August , Housing Prices falling for the first time in 11 years , etc. ) , the Bond market is starting to price in the possibility of Rate cuts as soon as the 1Q of 2007 . Additionaly , the implied rates are even starting to price in the possibility of a second rate cut by next August