Bond markets started the day in weaker territory after stronger economic data out of China and follow-through on yesterday's bounce (bonds had rallied on Ukraine headlines and bounced back toward weaker levels when the headlines dried up).

This morning's domestic economic also helped.  MBS and Treasuries improved modestly after weaker-than-expected Existing Home Sales.  Shortly thereafter, stronger Industrial Production numbers made for a quick jolt to the weakest levels of the day for Treasuries, but they've since come right back to their strongest levels.

MBS are outperforming, now only a tick away from unchanged in Fannie 4.0s (104-14), but still 3 ticks off in Fannie 3.5s (101-07).

Despite a wide variety of potential market movers today, bond markets haven't really done anything yet.  Both Treasuries and MBS are trading "inside days," meaning that the entirety of today's trading range falls within yesterday's highs and lows.  Still to come is a speech from Fed Chair Yellen, which is the last significant scheduled event among potential bond market movers.