Bonds are slightly weaker to start the holiday-shortened week (early close on Friday) and the losses happened to coincide with comments from Fed's Goolsbee pushing back on the market's takeaway from last week's comments from Fed's Williams (i.e. "we're not really talking about rate cuts").  Despite the correlation, there's not a good case for causality here.  Instead, we're likely witnessing something that we may see several more times before the week is over: random, holiday week movement driven by year-end positioning along with the lack of volume and liquidity commonly seen in the 2nd half of December.

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If Fed comments were materially impacting bonds, it would tend to show up more noticeably in Fed Funds Futures.

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