From Standard & Poor's Equity ResearchBonds, which plunged last week higher higher than expected rises in PPI and CPI, heading higher in early going Monday in flight to safety from skidding global stocks. Equity markets worried the higher inflation prevent the Fed and possibly other central banks from lowering rates soon to fight slumping economies. Puts backs between rock and hard place. The 2-year Treasury notes up 04/32 to 99-25/32 for yield of 3.258%, 10-year notes up 11/32 to 100-15/32 for yield of 4.199% and the 30-year bond up 18/32 to 106 for yield of 4.628%. See today's TAF auction novel, nothing more. Awaiting reports today on U.S. Q3 Current Account, which see showing deficit of $183.7 billion vs. $190.8 billion in Q2; New York Fed's Dec. Empire State Manufacturing survey, which see down to 20.0 from 27.4; total TIC flows, and the National Association of Home Builders market index. European bonds higher in flight to safety.