Greece fears likely caused US 10Y government bond yields

Good Morning,

- Euro set for Rocky Week as Greece stares into the abyss … ?

- Negotiations may be ongoing, but: Greece has effectively said it won't pay the IMF on June 30; the ECB has said it won't raise the ELA facility at present, putting the Greek banking system on the brink of a liquidity crisis, forcing officials to institute capital controls and keep banks closed on Monday; and Greek officials are putting the country to a referendum vote over the Eurogroup's aid proposal, in which the government will campaign against it in a lead up to a July 5 vote. The Euro is rightly upset.

- Greek government issues capital controls decree, Greek banks to remain closed until July 6.

- EURUSD gapped lower and fell below 1.10 through morning trade reaching its lowest level since June 2nd as the Greece situation escalated. Greek Capital Controls Begin: Banks, Stock Market To Remain Closed From Monday.

- $XAUUSD climbed as much as 1.1% through morning trade this session as Greece exit fears likely drove demand for the safety-linked metal.

- BOJ's Kuroda: Can't ignore risk factors to BOJ's inflation scenario, commitment to reaching 2% 'will never be compromised'.

- Greece fears likely caused US 10Y government bond yields to fall more than 6.7% through morning trade on increased demand for safety assets.

- US urges Europe, IMF to reach deal to keep Greece in eurozone.

- Top US officials waded in at the weekend to try to help resolve Greece's financial woes, urging Europe and the International Monetary Fund to come up with a recovery plan that keeps the country in the eurozone. In a series of separate phone calls on Saturday to IMF Managing Director Christine Lagarde and the finance ministers of Germany and France, Treasury Secretary Jack Lew urged them to "find a sustainable solution that puts Greece on a path toward reform and recovery within the eurozone," according to a Treasury Department statement on Sunday about the calls.

- EU's Dijsselbloem comment from Saturday: No agreement with Greek program to expire Tuesday.

- Euro higher again as EU's Moscovici says a deal with Greece is still possible.Comments out a few moments ago with the EU economic supremo still in optimistic good-cop mode'; EURUSD 1.1035 from 1.0990. Good offers expected into 1.1050-80

- Economist Who Coined ‘Grexit’ Now Says Greece Will Stay in Euro.The man who coined the term “Grexit” in February 2012 to describe the risk of Greece leaving the euro area now thinks the country will stay after all. “We expect the referendum to result in a comfortable majority for the ‘Yes’ camp, and expect no Grexit this year and a lower risk of Grexit in subsequent years,” Citigroup Inc. economists including Ebrahim Rahbari wrote in a research note for clients on Sunday.

- Greek Prime Minister Tsipras comment from earlier today: Greece re-applied for bailout extension, deposits are completely safe.

- AUD/USD turns positive, tests 0.7700.AUD/USD bounced-off fresh 2-month lows and jolted higher in mid-Asian trades, recovering swiftly from below 0.76 barrier. The Aussie bulls jumped back into the bids as traders ditched the negative sentiment around Greece and swung back higher as the latest easing effort by China offered the bulls some respite. AUD/USD rises from 0.7588 Currently, the AUD/USD pair trades 0.34% higher at 0.7684, quickly retracing from fresh session highs of 0.7694.

- Today news: German CPI, EZ Economic Confidence, US Pending Home Sales,GBP Consumer Confidence

Have a nice Week!