Paradoxically, US bond markets sold off (read: rates went higher) much more sharply than European bond markets today.  That will certainly make no sense to everyone who is blaming every move on Greece-related headlines.  If it was all about Greece, we'd see German yields taking the biggest hit when the Greek outlook improves because German debt has been the biggest safe-haven hedge against Greece-related risk. 

It's all so much to keep track of!  Suffice it to say that the big picture continues to be more of a factor than the near-term brushstrokes.  Greece is a near-term brush stroke no matter how much media attention it gets or how much it looks like Greek headlines are driving markets.  When we look back at today's trading, we see a fairly linear effort to move toward higher yields, without any of the spikes and bounces back that would characterize headline surprises.

What does that all mean?  Simply that bonds are bracing for impact from next week's potentially significant events and holiday weekend.  We have likely European headlines waiting for us on Monday and then straight to 4 days of significant data, culminating in NFP on Thursday before the extended Independence Day weekend.