U.S. stocks added to a global selloff on Monday as markets digested news of capital controls in Greece and the country veered toward a default on its debt, while the euro recouped some of its earlier losses against the dollar.
Despite concerns for month-end Greece debt payment failure, Treasuries are trading lower. Price action has yet to excite bearish traders as 10-year yields remain comfortably below 2.5%. This may not remain the case if Treasury futures settle just a bit lower.
Eurodollar and Treasury futures are higher in early trade following yesterdays curve steepening activity which left the very front end of the curve marginally higher and the back end well lower. The Eurodollar futures yield curve steepened by 5.5 bps over the first 8 years while the Treasury 5-30 yield curve added another 3 bps.