If I didn't know any better (and I might not), I'd guess that someone from Greece is calling up news organizations and pretending to be an EU official, claiming that the two sides are close to reaching a compromise deal.  Whether it was a Greek prank phone call or a rascally, but real EU official, "compromise" headlines did indeed come out overnight, and they created some pressure for core bond markets.  Reason being: the Eurogroup has a big fancy meeting regarding Greece tomorrow and anything conciliatory in favor of Greece that comes out of that meeting would decrease some of the global flight-to-safety demand that's currently benefiting the biggest, safest bond markets like Germany and the US.

Not long after those headlines, new headlines emerged that essentially said the original headlines were bogus.  Not only did the Eurogroup never say those crazy things, they're super mad at whoever did.  In a separate statement, German officials reiterated that sentiment.  As a result, overnight bond market weakness pulled back somewhat.

Still, trading conditions remain tentative with Treasury auctions yet to come and some lingering uncertainty about what will transpire at tomorrow's Eurogroup meeting.  Bond markets remain in slightly weaker territory and unfortunately put in a bounce near yesterday's closing levels.  That adds a negative technical anecdote to the moderate weakness, though the most serious negative development today would be breaking the morning's weakest levels (2.016 in 10yr yields or 101-28 in Fannie 3.0).