It was a softer open in credit with equities lower on news flow out of Europe, MF Global's bankruptcy, and some month-end profit-taking etc.

Even with the S&P stock index down -2.5% cash bonds were still relatively strong with credit doing better relative to the rest of the market.

The technical support for credit continues with dealer bond inventories at an all-time low and the new supply of bonds limited by corporate earnings black-out periods.

It makes sense that financial bond spreads under-performed relative to industrial and corporate bonds on a down day considering that they out-performed on the way in during the rally.

The Goldman Sachs 2021 bonds at +295 and the Morgan Stanley 21's at +370 are almost back to where they were before the credit rally; the JP Morgan 2021 bonds held in rather well closing at +215.

Recently issued Canadian covered bonds also held in well.

The markets are likely to see, and absorb, more primary bonds over the next couple of weeks ahead of the Thanksgiving holiday when things tend to slow down in the bond markets.

MF Global's bankruptcy filing did not cause much of a stir in the bond markets; the bankruptcy was to be expected once MF hired the law firm Skadden Arps on Sunday night.

The U.S. dollar surged against the Euro to close at 1.39 as Treasury bonds surged and the Bank of Japan stepped in to the currency markets to try and weaken the Japanese Yen.

Similar to what happened with the Swiss Franc, just a couple of large investors can suffice to appreciate the currency of a country perceived to be fiscally sound, thereby hurting that country's exports.

While there is no alternative to the U.S. dollar as the world's reserve currency of choice (and none likely to emerge in the foreseeable future), the fiscal situation in the U.S. is sending some investors out looking for short-term gains away.

Ironically, the low interest-rate environment that has been a hallmark of Fed Chairman Ben Bernanke's tenure is only making the outlook for unfunded pension obligations worse.

These unfunded pension obligations are earning close to nothing now and need to earn somewhere in the ballpark of 7% or more to tie out.

In technology, the pace of covert cyber attacks, most of them emanating out of China, seems to have picked up with the latest wave targeting chemical and manufacturing companies that produce products with military applications.

It will be a busy week in economic releases culminating in payroll Friday.