SMF Notes BONDX Small Losses:

 10-yr: -05/32..2.990%..USD/JPY: 80.18..EUR/USD: 1.4411

 Treasuries spent the majority of the session in negative territory with buyers only taking the lead just briefly following S&P's downgrade of Greece to CCC. Yields finished the day higher by as much as 2 bps as the lack of data provided a negative tone from the get go. The 10-yr briefly traded at 2.95% support, but was once again unable to move lower, finishing the day near 2.99%. Yield curve steepening continued as the 2-10-yr spread settled at almost 259. Precious metals finished near their worst levels of the day as gold lost $14 to finish at $1515 and silver fell $1.65 to close near $34.70. A busy week for data begins tomorrow with the release of retail sales, retail sales ex-auto, PPI, core PPI (8:30), and business inventories (10). POMO continues with the Fed buying $2.5-$3.5 bln worth of 2012/2013 maturities.