Treasury prices are surging higher this morning as yesterday's optimism on a new Greek debt deal fades. The flight to quality bid was further strengthened by overnight news that Chinese exports fell for the first time in two years.

A very light week of economic data ends today with another relatively calm day. The Dec trade deficit widened to $48.8bln, largest since June of last year. Later this morning, the Univ of Michigan consumer confidence index is expected to show a slight dip in confidence. Lastly, Fed Chairman Bernanke is scheduled to speak before the National Association of Homebuilders in Orlando at 12:30PM eastern.

Currently, the 10yr yield is at 1.979% (2.036% Thursday) and the 2-10 yield spread is at 172bps, 6bps flatter since yesterday morning.