The range in the New York session was narrower than it was in the overnight session, a rare occurrence, so to say prices were constrained was an understatement. Treasuries started out better bid after soft European data, but prices were pressured lower on a string of strong data in the U.S., including Empire State data.
There was a bit of a turnaround after a large deal was announced at midday. Foreign investing was still robust, and that tended to underpin the market, despite the upbeat data. But the uptick was not large, in part because real money was less short after last week's rally.
This week's PPI, CPI and leading indicators should be able to spark significant movements in the treasuries.