More attention is being paid to politics than to actual market events. The U.S. labor market continues to be of great concern since an "unemployed or underemployed consumer does not consume" except for essentials such as food and energy.
Like most others, I was impressed with the bullish advance following the employment report last Friday. That report was of course the weakest in over a year and brought concerns that the one bright spot for U.S. domestic growth had finally turned for the worse.
Quietly, Treasuries trade back to post auction lows from yesterday. Volume is not large, but prices are unable to hold gains following the weaker employment report, weak factory orders out of Germany the other day and yesterday's FOMC minutes.
Treasuries and Eurodollars are higher in overnight trade, in sympathy with the lower than expected factory orders report out of Germany and falling yields there. U.S. domestic rate movement is quite modest thus far, recovering little of the two session decline following Friday’s sharp post-employment report advance.