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Treasuries End Lower

Treasuries, which fell last week, moved lower again on Monday. Traders were still digesting Philadelphia Fed President Santomero's comments over weekend that "if the economy evolves as I anticipate over the next year or so, I expect we will continue to move the federal funds rate toward neutrality at a measured pace". European Central Bank President Issing also said an interview in Der Speigel was taken out of context when it quoted him calling for easier rates, ompounding the global back-up in yields. The yieldon the 10-year note finished higher at 4.09%.

The next significant events for the market: Tuesday's reports on May PPI, which is expected to belower by 0.2%, and Retail Sales, which is seen falling 0.2%.

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