It was risk-off as the revenue outlook for banks now seems worse after Wells Fargo and Citigroup reported earnings.

Empire Manufacturing numbers for the New York area also disappointed.

The silver lining appeared to be the amazing weekend weather and the performance on display by the New York Giants.

To some degree Monday's price action was also a partial reversal of last week's rally, which did not make a great deal of fundamental sense.

What happened last week?

The Euro surged against the U.S. dollar and European stock indices soared; some European banks were busy selling USD-denominated assets and thus boosting demand for Euros.

Some senior New York players in the distressed arena were catching flights to European cities to pore through documents and hunt for bargains.

There was also a "fear of the rally" rally where players who were short the markets covered their short positions fearing a Central Bank liquidity-induced rally.

The optimism around the Euro-area faded somewhat with words of caution coming from German Chancellor Angela Merkel's office.

A G-20 set deadline for a European solution seems ambitious; it is unlikely that a concrete and comprehensive plan of action can emerge by October 23.

Thinning market volumes means that the markets will react sharply, one way or the other, to the parade of headlines.

In bond land, players were focused on the rare bond issues to price today.

Agricultural chemical company Mosaic's 10 year and 30 year bond issues saw heavy investor demand; the bonds were priced more than 25 basis points tighter than initial price talk.

The Republic of Turkey's 2022 maturity $1 billion USD-denominated bond issue priced at a spread of +310 versus 10 year Treasury bonds.

Away from high quality bonds, the secondary markets are telling another story.

While cash is plentiful and there is money flowing into funds, that does not necessarily translate to managers investing it.

Many managers remain skeptical about the overall market.

Europe is still uncertain and the Greece situation needs resolution before anyone can start to buy risk in a meaningful shift.

Demand is less evident for bonds issued by financial names and companies hard up on cash relative to high-quality paper.

Those companies that do not need the money are coming tighter in spread terms and those that really need it are paying up with large concessions when they issue bonds.

As a player put it, it is a case of the "haves" and the "have nots."

Players will be watching earnings tomorrow; Goldman Sachs, Bank of America, and Apple report.