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Bonds Lower

S&P MARKETSCOPE: Treasurys were lower in thin Monday trading with Europe closed for holiday and no economic news to guide traders. With the exception of the Treasury's $24 billion new monthly 2-year announcement, there was no market moving news. The market is in a downtrend as most see the Fed gradually changing to a more aggressive stance due to signs of inflation. Traders are worried oil prices are going to rise to $60 a barrel soon. But another camp notes the economy has not been roiled so far by the higher oil prices. The debate is over whether higher crude oil prices will cause inflation and/or slow the economy.

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