Technically, MBS and Treasuries are both in positive territory when compared to yesterday's closing levels.  That said, those closing levels were the weakest of the day, arriving only after a somewhat sharp afternoon sell-off.

For practical purposes, MBS and Treasuries are holding their ground near yesterday's weakest levels.  They had been staging a stronger bounce back until the morning's second round of economic data had its say.

Consumer Confidence came in at 85.2 vs 83.5.  That may have been good enough for a small amount of bond market weakness, but New Home Sales is the bigger story.  May New Home Sales rose at the quickest pace in 22 years, and at 504k, significantly beat the forecast of 440k.

10yr yields rose a quick 2bps after that news and Fannie 3.5s dropped 5 ticks just as quickly.  Refreshingly, the losses stopped there and MBS have been fairly sideways since then.