The Treasury market is very quiet (except for the front end which is seeing some quarter end window dressing) and the long end is leading the gentle uptrade. The curve is a tad flatter than it was when I first checked spreads at 600AM New York time. At the moment I see 5s 10s and 5s 30s about 0.2 basis points flatter than early morning levels.
One seasoned salesman commented that in this holiday truncated week some desks are thinly staffed and that might impair liquidity such that a couple of clips of bonds could be market moving.
The focus for the moment is the Chicago PMI which is set for release at 945AM.