In like a lion and out like a lamb. Treasuries started the last shortened week of March and the first quarter tamely, but finished Monday's session a little friskier as stocks continued to deteriorate and technicals point to an oversold bounce ahead of the long Easter weekend. The sole data release was existing home sales for February, which declined 2.8% to a 5.88 million unit pace, a smaller than expected decline from record levels in January.
Supply in the form of a FHLB $3 billion three-year global and several more corporate issues washed through the market, though Treasuries resurfaced afterwards. These deals dominated fair and foul winds on the day, while volumes remained extremely light ahead of Greenspan's 5 pm EST speech Tuesday. June 10-year notes were initially a little hungover from a late 10,000 bid on Friday, but the benchmark T-note ran into support ahead of the 95-15 barrier (5.473%), closing down 1/32 at 96-31 (5.394%).
The curve flattened 4 basis points to +207 basis points, as the cash bond closed 4/32 in the green and the two-year note remained on the back foot ahead of the auction on Weds. KC Fed's Hoenig canceled his Nebraska speech due to snowstorms.