Treasuries finished higher in price, though the bond market little to go on other than a brief safety bid after British warships were impounded in Iranian waters, says Action Economics. The two "Ts" of terror and technicals were all the market had to go on, without even the U.S. Open of golf to allay dealer boredom, just early Wimbledon rounds, says Action Economics.
The 2-year yield steadied below 2.75% and 10-year circumnavigated within a couple basis points of 4.70% for the entire session.
The U.S. Treasury announced a $25 billion 2-year note auction for Wednesday, which at least will give grateful dealers something to set up for mid-week.
Fed deflation guru Bernanke sounded like he was ready to throw in the towel on lower prices after a repeat speech on the euro, though the market did not find this noteworthy, says Action Economics.