1.   Fear of accelerating inflation reduced optimism the government will cut interest rates soon.

2.   Investors will watch economic releases this week for evidence as to whether their inflation optimism is justified.

3.   U.S. bonds rose on inflation optimism while notes fell amid concern the Federal Reserve could delay a widely expected cut in interest rates.

4.   U.S. bonds were steady amid inflation optimism even as concern the Federal Reserve could delay a widely expected cut in interest rates drove notes lower.