Fed funds futures climbed on the day, reflecting increased risk (about 30%) for an intermeeting rate cut. With the exception of the demand for liquidity, buying interest in Treasuries was lackluster ahead of Greenspan's testimony Wednesday and payrolls on Friday. Stocks had another rough day after more warnings from numerous high-profile tech names hit after-hours on Monday. Sellers completely dominated the session with few willing to step in on the buy side.
Weaker than expected data had little impact, nor did generic comments from Fed officials.
USD-EUR took a hit on equity weakness.