Very little has happened so far on this holiday-shortened Friday (Monday's the holiday, but MBS/Treasuries close 3 hours early today).  The lack of activity will be doubly true from here until 2pm.  As such, this "mid-day" will also serve as the day's recap unless there's a substantial change in market conditions over the next 2 hours.

Treasuries traded just slightly stronger overnight, but improved most during the first hour of the domestic session.  Market movers are impossible to pin down with certainty, but the fact that rates are adhering to the technical consolidation pattern in place since May 15th is as good as any.

In other words, Treasuries and MBS have been in tight, consolidative trading ranges since hitting the year's best levels on the 15th, and today's strength merely serves to keep them in those ranges. 

New Home Sales data had no effect, though bond markets did extend gains heading into the 11am hour, possibly with an eye toward comments out of Russia regarding a "classified document with retaliatory measures to western sanctions."  It could just as easily be trading necessities relating to today's Treasury options expiration.  The point is that while trading levels remain in that consolidative range, it doesn't much matter.

After moving to new lows just under 2.52 at 11am, 10yr yields are back up to 2.53.  Fannie 3.5s were up to 102-21 at their highs, but are back down to 102-19 currently.