Treasury prices are edging lower today on improved optimism following the early morning approval of the new Greek austerity package.  However, EU finance ministers still need to approve the new aid package amidst headlines that suggest the new austerity measures don't go far enough. 

The US economic calendar gets off to a slow start but heats up as the week progress.  The calendar is blank today but tomorrow's schedule brings the January retail sales report followed up by industrial production and the FOMC minutes on Wednesday.  There are also several Fed representatives schedule to speak this week, including Fed Chairman Bernanke on Thursday at the FDIC's Future of Community Banking Conference. 

Currently, the 10yr yield is at 2.000% (1.979% Friday) and the 2-10 yield spread is at 173bps, 1bps steeper since Friday morning.