MBS are outperforming Treasuries today and have been flirting with positive territory heading into the noon hour.  Treasuries are still about 1bp higher than yesterday. 

Bond markets were weaker overnight, led primarily by London this time as the Bank of England's meeting minutes showed 2 votes for a rate hike.  Other economic data in Europe and Asia was generally not bond-market-friendly. 

The domestic session saw MBS and Treasuries start in weaker territory.  That said, they both did a good job of holding ground during the first few hours and kept the losses contained in a narrow range.  From there, MBS have simply done a better job of bouncing back.  This is partly a factor of natural spread dynamics (i.e. Treasuries have benefited more from rallies and been hurt more by sell-offs recently) and also due to scheduled Fed MBS buying being condensed in the morning hours.