Treasury prices are slightly lower this morning as Greece continues to work on a new debt deal.  Optimism produced some light selling overnight, which has the yield on the10yr flirting with the 2.00% threshold. 

Economic data remains light today with the schedule already completed.  The weekly MBA mortgage applications index posted a healthy 7.5% increase.  Refinances carried the load with a 9.4% increase versus an anemic 0.1% increase in purchases.  Later this morning San Francisco Fed President John Williams will be appearing, followed by a 1PM eastern $24bln 10yr auction.

Currently, the 10yr yield is at 1.998% (1.936% Tuesday) and the 2-10 yield spread is at 173bps, 3bps steeper since yesterday morning.