Treasury prices edged higher overnight as uncertainty increases around the latest Greek bailout.  EU finance ministers failed to finalize terms for a rescue and have asked for additional controls on future budget decisions. 

The US economic calendar remains fairly busy today with data on US housing, labor and inflation.  The weekly jobless claims report showed better than expected results in both the initial and continuing claims reports.  Initial claims unexpectedly fell to 348k vs expectations of a 7k increase to 358k.  Meanwhile, both housing starts and permits increased in January, building off of yesterday's increase in NAHB housing market index.  The January PPI data produced mixed  results with the headline number coming in below expectations but core above.  As a result of this data, treasury prices have begun to edge lower this morning.  Lastly, Fed Chairman Bernanke is scheduled to speak early this morning at an FDIC conference. 

Currently, the 10yr yield is at 1.948% (1.926% Wednesday) and the 2-10 yield spread is at 167bps, 3bps steeper since yesterday morning.