MBS are now at the best levels since before this morning's economic data.  Before that, Treasuries were slightly weaker overnight, resulting in opening levels 2-3 ticks in the red for Fannie 4.0 MBS.  Jobless Claims were lower than expected and Continued Claims fell to the lowest level of the new year.  This prompted a quicker move into weaker territory, resulting a 6/32nds loss by 9:30am.

Bond markets wallowed in that weaker territory until 10am and began bouncing back.  It hasn't been a straight shot by any means (10yr yields actually revisited their highest levels of the day just after the Fed's daily Treasury buying operation ending at 11am), but there is some resilience. 

Interestingly enough, it's right around the 2.74-2.75 zone of yields.  This is quintessentially central/neutral territory in the broader landscape of bond markets since mid 2013.  While it's a bit weaker than shorter term averages, it's not an unreasonable place for rates to be heading into tomorrow's NFP data.