However, Treasury shorts got little satisfaction and had to cover positions quickly after talk of a fire/evacuation at a mid-town New York City bank gave prices a safe-haven boost and knocked stocks into the red. Though the evacuation turned out to be only a drill, the markets' reactions reflected investor skittishness.
With the path of least resistance higher, the bond rallied a point as stocks foundered. The 10-year sector benefited from covering related to Friday's options expirations as well as expectations of convexity buying on any further decline in yields. But as the buying dried up and stocks reversed back into the plus column, Treasuries couldn't sustain their bullish momentum and collapsed into the close, with the 30-year off 10/32.