The September bond stalled just shy of 102-15 June 28 highs, but the charts have been opened to 102-25/28 late June highs. The 2s/30s spread narrowed to +152 basis points before widening back out to +155 basis points. Some early European broker buying of September bonds and 5s set the tone, with bullish writing of bond puts also a positive factor. The CRB fell to 205 before recovering, with weakness in energy and grain groups weighing on the commodity index.
Corporatations remain profitability-challenged, and stocks look likely to lag until the Q2 earnings season climaxes this week. A pair of Fed members (Moskow & McTeer) spoke over the weekend, but offered opposing views on whether the economy would recover later this year. May inventory data suggested the correction is well under way.