A week after Sen. Evan Bayh announced he would not run for the Democratic nomination for president in ’08, speculation is gradually mounting in Washington and Indiana that the two-term senator will instead run in two years for the job he held from 1988-96 and reportedly loved more than being in the Senate -- governor of the Hoosier State.

Sources close to Bayh, who explored and then opted against a bid for the White House, does not like the pace in the Senate and the hours that keep him from coming home to dinner with wife Susan and their twin sons. As governor, the same sources said, Bayh was more in control of his schedule and preferred being an executive to being a legislator.

Should Bayh run for the governorship, he would be an instant favorite over Republican incumbent Mitch Daniels, who served as head of the Office of Management and Budget under George W. Bush. In recent months, Gov. Daniels has seen his popularity diminish over his handling of state spending issues.

If Bayh wins his old job back, the same sources have already guessed whom he would name to fill the remaining two years of his Senate term: Indianapolis Mayor Bart Peterson, Bayh’s close friend and former top aide.