Bonds, which closed early for Presidents' Day holiday, plunged on higher-than-expected core PPI reading, according to Marketscope. January PPI jumped 0.8%, higher than the forecast 0.3%, and Treasuries traded lower in response. The 10-year yield surge is a culmination of a slide since Greenspan Wednesday said higher rates were a "conundrum". Treasury Secretary Snow said the Treasury has no intention of issuing bonds, but prices declined further.