Cyprus Issue pushing down Spreads.

While equities continue to go higher on the back of possible action out of Cyprus, Euribor and Short Sterling Spreads and the Yield Curve in General has been under alot of pressure, as we approach multi month lows in these spreads.
As I always do I have been buying these Spreads as they approach these levels, but with a bit more caution as its hard to tell how long this will continue. Yesterday presented some good volatility as we pushed up in Bonds, before retracing a large part of it. Mar14Jun14, Traded from 5s to 5.5s, yesterday but today has traded down to 4s as the move continues downwards. Im long some 4s and 4.5s looking to get out at 4.5s if it comes. This story is replicated along the curve, in the red/greens, Mar15Jun15 traded 6.5s rebounded to 7.5s, and now trade back to 6.5s and traded as low as 6s earlier this morning.
Todays action has not been as volatile as yesterday, but there has been so big clips going through, on this yield curve flattening.
Going forward the main event of the week is tomorrows FED announcement  This will give further guidance on how accomodative the fed will be, hoping for some fireworks!