Not surprisingly Treasury prices were lower early this morning after being presented with mostly positive Euro zone economic data. The slide in Bonds and Notes this morning isn’t out on context following hawkish Fed dialogue from Monday from the Fed’s Mester who seemed to suggest that a rate hike could be seen even if the US economy simply maintained its current pace! Adding into the bearish tilt this morning is a wave of news that Euro zone business PMI registered the fastest growth in 5 years while Japanese and German PMI’s reached up to their highest levels in 3 years! However, there might be some residual concern of political wrangling in Washington with the focus on appointments and hot point topics instead of a clear focus on pro-growth initiatives. The North American economic schedule will be fairly quiet, with the only data point of note being the “flash” Markit manufacturing PMI number that is expected to see a modest uptick from January’s 55.0 reading. There will a busy day of Fed speakers, however, which will include Minneapolis Fed President Kashkari during morning hours while Philadelphia Fed President Harker and San Francisco Fed President Williams will speak during the afternoon. The Commitments of Traders Futures and Options report as of February 14th for U.S. Treasury Bonds showed Non-Commercial and Non-reportable combined traders held a net short position of 76,972 contracts. The Commitments of Traders Futures and Options report as of February 14th for US Treasury 10 Year Notes showed the Non-Commercial and Non-reportable combined traders held a lofty net short position of 569,493 contracts.