10-Yr: +02/32..3.820%.. USD/JPY: 98.3100.. EUR/USD: 1.3877Mixed: Bonds continue to work backwards, giving back gains with the market seeing growing recovery sentiment with the short end leading. The longest bond has been able to retain its rally but is beginning to lag. Sliding stocks and lack of data are offering little in the way of drivers while mixed global bonds add weight. The market has been working toward technically relevant levels with 4% on the 10-yr yield within sight. The ongoing rating downgrades on sovereign debt remains a concern and has been throwing domestic ratings into question. The 2-day uptick in Libor has had minor barring on trade and the market is looking out to the week's auctions, with the combination of Treasury's 3-10-and-30-yr issues set against the Fed's buying of 4-17-yrs. The curve has been flatter with the 2-10-yr yield spread back at 250 after its historic trip to record levels over 280. The dollar has been grinding gains looking to head back to the 1.3800 point on the euro and holding near 98.50 on the yen. Gold has been on offer as the buck gains with spot now 948.38 (-6.88) and crude is slipping, running 67.56 (-0.88). There are no data or Federal Reserve speakers on tap so trade will be grasping for drivers.
