S&P MARKETSCOPE (09/10/2007, 8:25am): Treasuries continue to gain as greater-than-expected downward revision in Apr-June Japan GDP adds to fears that global growth is slowing, sends Asian buyers into US bonds. The Japanese GDP revision followed Friday's surprising drop in US payroll number, which send treasuries soaring, and yields falling.
Action Economics says traders are also very concerned over the some $140B in commercial paper than comes due over the next 10 days.
The 10-year note was up 04/32 to 103-02/32 for yield of 4.372%. The yield on the 10-year note was near its lowest level since January, 2006. The 30-year bond was up 09/32 to 105-02/32 for yield of 4.686%. The 2-year note was unchanged at 100-06/32 for yield of 4.90%.
Today's focus will be on Fedspeak; economic data is light, with only consumer credit.