Treasury markets have maintained the bid that began on the news from Cyprus. This is interesting, because equity markets have rebounded in the face of the same headlines.
This indicates to me that global unease has the potential to push money into the relative safety of U.S assets. In this scenario, I believe that equities and treasuries can rally together.
Continued global uncertainty also strengthens the case for continued Fed bond purchases, which will support bond prices.
I like buying the June 10-year Treasury futures at current level of 131.11, with an upside objective of 132.10, and a stop-out level of 130.27.