From Standard & Poor's Equity ResearchTreasuries enjoyed a small dead-cat bounce in the wake of the weaker than expected June ISM report, which fell to 53.5 from 54.4, but the rally quickly fizzled in extremely lean holiday trading conditions, says Action Economics. The 10-year note yield rose to 5.15%.
Construction spending fell 0.4% in May and briefly lent to the shallow bid, but liquidity quickly dried up ahead of U.S. Independence Day celebrations. Focus will quickly switch to the upcoming European Central Bank meeting and U.S. employment report when traders return from the long holiday weekend.