Treasury prices are creeping higher this morning as weak economic data on EU manufacturing is lending some support to the treasury market.  Investors continue to question whether the new Greek deal will only stave off default for the short term. 

The US economic calendar finally awakens from its long President's weekend slumber.  Data is contained to US housing today with reports on mortgage applications followed by existing home sales.  The weekly MBA applications index showed an overall decline of -4.5%, adding to last week's -1.0% dip.  Refinances dropped -4.8%, while purchases dipped -2.9%.   Lastly, the Obama administration is expected to announce plans today on lowering the corporate tax rate to 28% from 35%.

Currently, the 10yr yield is at 2.045% (2.031% Tuesday) and the 2-10 yield spread is at 174bps, 3bp steeper since yesterday morning.