After several days of pronounced volatility, bond markets are taking it easy by comparison so far today.  The overnight session had the nostalgic feel of the days before the recent emerging market turmoil where Treasuries would stay a bit more narrow during Asian hours and grow only slightly more volatile into the European session.

The overnight range was an acceptable 3bps in 10yr yields and MBS opened 3-4 ticks weaker.  Both MBS and Treasuries weakened just a bit more following the morning's economic data, though it wasn't especially inspiring in that regard. 

Our morning update noted that the only positivity in Jobless Claims was the drop in the Continued Claims component, and the rest of the inspiration for bond market weakness would have to be chalked up to the "as-expected" GDP data, though it did have strong final sales.   At 10am, exceptionally weak Pending Home Sales didn't really do anything to help, but neither did it hurt.  We're currently still in the same range established between the open and 9:15am, but seem to be having more of a problem making gains.