In a holiday-shortened week, we saw spreads vacillating from strong to weak. The market remained firm though, with only liquidity the main sufferer, as fewer eyeballs were on the market. More focus was paid to the Cyprus unraveling and questions as to if these were to create a precedent, especially in similar institutions in long-suffering states like Spain and Italy. Especially consistent throughout the week was the strength in treasuries, with the 30 year marching to a 3.1% yield from the recent wide of 3.25 plus%.
Fund flows were also mixed with the amounts and direction not pointing toward any trend, merely reaffirming the strength of the market.