After a glut of economic data this morning, MBS are roughly in line with pre-data levels, down 1/32nds in Fannie 3.5 coupons.  Although this morning's data has been prolific, none of it was especially meaningful as far as motivating swings in price action or surges in volume.  In fact the first major surge of volume across markets was seen in response to trading levels and tradeflows as opposed to lining up with any of the economic releases.  Since the economic data will be recapped in the next MBS Commentary post, we'll focus instead on the charts.  Here's the morning so far in MBS and Treasuries from the MBS Live Dashboard:

When we talk about volume picking up in response to "trading levels," this is often interchangeable with the notion of technical support or resistance.  In today's case, if we look at 10yr yields in the context of the same trend channel as yesterday (and Friday for that matter), we see simply "ongoing adherence to the trend."  If you want to think about this with different words in mind, you could just as easily say that yields bounced off the bottom of this trend channel:

On a slightly off-topic note, here's a quick chart on the NAHB Housing Market Index.  It's certainly nice to be able to say things like "highest levels since 2007" when referring to any housing market metric.  And I think that you'd be hard pressed to find anyone that would be more pleased with evidence of a housing recovery than we would be (MND staff and our readers).  But it bears mentioning that a reading of 25 on this index means that 75% of respondents are still not confident about the housing market.  The result is clearly better than anything else we've seen recently and easily could be another step in the right direction, but there are quite a few steps to go before getting anywhere near previous territory.