It was quiet at the onset but the new issue bond machine kicked into gear later in the morning with several non-financial bond deals getting printed.

Stocks closed flat and trading volumes were relatively light in the markets.

The tone was firm in credit land with cash bonds leading the way tighter; CDS (credit default swap) spreads under-performed on a relative basis.

The secondary bond trading action that there was centered on institutional buying of bonds as investors reach for yield.

The New York Federal Reserve Bank's Maiden Lane RMBS (residential mortgage backed securities) auction went very well with demand strong for anything with spread.

There was more Greek chatter around an aid deal with the European Union but a certain degree of Greece-headline related fatigue has set into the markets.

"No news" is being treated as "good news."

On this side of the Atlantic, a surprise was Rick Santorum's sweep of Mitt Romney in Tuesday's three Republican presidential contests to determine the Republican candidate who will be challenging President Obama in November.

The Republican primary race has been anything but boring, providing plenty of fodder for late-night comedy shows.

Regardless of who wins in November, spending cuts are needed to correct the course of the economy.

Absent substantial spending and entitlement cuts, taxes will have to be raised and that will simply impinge on the long-term recovery of the world's largest economy.

Initial jobless claims numbers are out on Thursday.