Treasury Prices Finish Lower
Treasuries ended sharply lower in price Monday, trending lower all session. They caught a bid ahead of the open, but prices declined quickly following stronger than expected personal income and spending data (which sparked inflation concerns) and stayed pressured on further oil weakness.
Dealers and speculative accounts already began unwinding weekend event risk trades, but lower prices then intensified the selling pressure. Large curve flattening bets were also entered, with a good chunk of the contraction a function of weekend steepeners coming undone.