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Even stronger domestic fundamental data cannot pressure US bond prices. Longer dated securities again have caught a bid on concerns that the Greek Prime minister has requested the country’s finance ministry to prepare a document on the implications of a Greek default. Earlier today Treasuries came under pressure as dealers prepared to take down +$72b of new product this week. The government is to auction +$32b in three-year notes tomorrow, followed by +$24b of 10-year debt on Wednesday and $16b long-bonds on Thursday.

Merkel and Sarkozy indicated in Paris this morning that time was running out for Greece.
Any negative headlines regarding Greece and rumors of default will only increase the markets appetite for risk aversion trading strategies. Before today, long bonds managed to back up +18bp over the past three trading sessions. Despite initially been oversold on the back of a stellar NFP report that saw the US unemployment rate improve three ticks to +8.3%, the 2/30’s yield curve has flattened -3bp to +286bp.

Prime Minister Papademos over the weekend asked the ministry “to record accurately and realistically all the consequences of the country’s exit from the euro zone.” Greece still has not come to an agreement on the austerity measures needed to qualify for a second bailout from the EU and IMF. Today, the Greek government has agreed in principle to axe -15k workers to fulfill one of Troikas conditions (a reason why the EUR has temporarily caught ‘a second wind’). Papademos needs to receive funds by March in order to avoid a ‘disorderly default’. Not helping market sentiment are the negotiations between Greece and the PSI bondholders remaining unresolved.

All parties concerned have a strong incentive to reach a deal and it would not be surprise to see an agreement in the next few days. However, once a deal is reached, markets again will begin to focus on the degree of actual participation in the swap by bondholders. The market seems to be looking for other reasons to apply risk aversion trading strategies.

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U.S. Ten-Years:

As Iran continues to grapple with the West over its nuclear ambitions, experts say the nation could double its already sizable oil output if sanctions were lifted to allow foreign investment into its oil industry.

Andy Zaky has called a bottom for the fifth time in a row

Andy Zaky has called a bottom for the fifth time in a row

FORTUNE: Bullish Cross’ Andy Zaky, never shy about tooting his own horn, has asked me to remind readers that on Thursday, with Apple (AAPL) trading just over $530, he announced that the share price was at or near a bottom and was about to bounce.

“Those who have been waiting for a correction in Apple to buy the stock,” MORE

Middle-school students become adults for a day at JA Finance Park. where they balance a budget and learn how to manage their money.

JPMorgan Chase’s multibillion trading loss will be forgotten before the year is through, Chief Executive Jamie Dimon predicted Monday at the Deutsche Bank Global Financial Services Investor Conference.

As Iran continues to grapple with the West over its nuclear ambitions, experts say the nation could double its already sizable oil output if sanctions were lifted to allow foreign investment into its oil industry.

Coming months will determine whether Greece will keep paying its bills and remain in the euro, moves that have huge implications for the global economy.

A plunge in Facebook’s stock didn’t faze the broader U.S. market Monday. U.S. stocks bounced back from their worst week of the year on renewed optimism that European leaders would find a way out of the sovereign debt crisis.

Facebook’s stock slid below its offering price in early trading Monday, following a lackluster day of trading when the stock debuted.

Facebook’s stock slid below its offering price in early trading Monday, following a lackluster day of trading when the stock debuted.