Cue the Stock Lever! Without scheduled economic data this morning, Treasuries are following stocks and stocks are under pressure. The S&P is currently at risk of breaking a mild uptrend that began earlier in the month. It's all right here in this convenient chart:

(Reuters) - U.S. Treasury prices fell on Monday as worries about financial stability in the euro zone were offset somewhat by anticipation among U.S. traders of a $66 billion in new Treasury supply this week.

Safe-haven buying briefly pushed benchmark 10-year yields to their lowest in at least 60 years before prices turned negative. Even after the Treasury market gave back its gains, traders were still looking at Europe as the largest driver for price action for the day.

"Right now the long end (of the yield curve) has to be looked at as more of a barometer of fear than investment," said Lou Brien, market strategist at DRW Trading in Chicago.

"As long as fear and uncertainty continue, prices can stay up here but for sustaining these levels, without fear, inflation will need to come lower." "Common sense tells you that when you don't have enough money to pay your obligations you either have to get more money or default," said Todd Colvin, a futures trader at MF Global Securities in Chicago.

"Eventually you've got to take your medicine on this and we haven't yet seen it. The fact that Greece hasn't defaulted yet doesn't mean it's not going to default in the coming weeks. Germany has made it very clear they're not going to give money away anymore."

Rick Klingman, a Treasury trader at BNP Paribas in New York, said Treasuries' losses were due mostly to a retracement in the stock market that saw stocks come off their anticipated lows of more than 2 percent for the major indexes.

Bond markets were "strong" overnight in the sense that benchmark 10yr notes traded almost exclusively lower in yield than Friday's close and while it was only 5 bps lower at the best moments, even "sideways" would be strong considering that many viewed Friday as some sort of overly-aggressive Flight-to-Safety on Greek Default fears. Then again, Greek Default fears haven't really gone away, so if you still want to chalk this morning's 1.932 10yr yield up to that, feel free. After "the drop" MBS are right back at or near their technical ceilings with 3.5's down 4 ticks (about 16 ticks worse in price when you factor in the roll) at 101-21 and 4.0's are down 3 ticks at 104-13. The most significant item on the domestic calendar today is the 3yr note auction at 1pm. Other than that, markets remain sensitive to news our of Europe. Rate sheets should be slightly worse this morning, but it's possible some of the lenders who priced conservatively on Friday, or who did not reprice for the better from morning sheets could be priced flat or even slightly better.