The 30-year bond edged up 01/32 to 115-03/32 for a yield of 4.34%. Early weakness drove the 10-year yield as high as 4.15%.
There is a lot of talk about an asset allocation shift into equities and out of bonds, which may account for some of the price weakness from Friday to this morning. Stocks extended gains from Friday, pushing the NASDAQ to its highest since Jan. 4, 2005.
Bond activity could be driven this week by position adjustments ahead of the June CPI report on Thursday. The PPI comes out Friday. There were no key reports out today to drive market direction. Oil prices fell. The greenback weakened.