Treasuries struggled from the open and losses were extended after data showing a sharp widening in the trade and current account deficits weighed heavily on the dollar. There was talk of size selling in the bond by a hedge fund on the dollar's slump.
Weakness in stocks provided some marginal support, but a stronger than expected rise in leading indicators and an unexpected surge in the Philly Fed index to 22.2 in June from 9.1 sideswiped Treasuries for the duration. A brief data-related knee-jerk rebound in equities added to pressures on bonds.
And though Wall Street's rebound proved transitory, Treasuries couldn't hold a bid as the day's strategy in fixed income was to sell strength. Reports of "black box" technical selling on the break of key levels also contributed to extended price declines.