While sovereign issues have slipped from the front page to the back of the newspaper, we continue to have worries about several issues.
Issuers will probably look to use recent stability to price bonds before the new issue market begins to slow later this month in anticipation of the July 4 holiday.
Tone remains cautious as investors weigh political and economic risks and dealers have been paring holdings.
How many sovereign defaults could occur before financial Armageddon?
The ongoing crisis in sovereign risk has highlighted the differences between investing in corporate and government bonds.