Bond markets were just slightly weaker overnight, with no major volatility or trading themes emerging.  MBS walked in the door a bit weaker as a result, but were soon right in line with Friday's average levels.  Treasuries were a bit weaker.

The 10am Pending Home Sales release was quite a bit stronger than expected, and actually moved markets.  It tends not to, but the possibility was there if it ended up convincingly breaking the 8-month losing streak in place until today. 

The damage was fairly minimal by the time the next market mover showed up.  The 'market mover' in question was a steep sell-off in equities markets that saw S&P futures fall over 25 points peak to trough.  Bonds recovered during this time, but neither Treasuries nor MBS made it to any better levels than those seen earlier in the morning.  For MBS, this was just barely into positive territory, and while it netted us a few reprices, it was more of a token bounce.

Stocks corrected into the afternoon and gained back well over half of the initial sell-off, pressuring bonds into weaker territory in the final hours of the day.