This morning's Existing Home Sales data was slightly weaker than expected.  The annual pace fell to 5.05 mln from 5.15 mln last month.  Expectations were for an increase to 5.20 mln.  The results were close enough to consensus that we saw no major reaction in bond markets.

MBS and Treasuries were stronger at the open and moved to their weakest levels by 10:15am.  They managed to hold their ground without progressing into negative territory for more than a split second.  From there, the positive 2-day trend has continued.  The mid-morning strength came courtesy of stronger European bond markets and weaker stocks.

10yr yields are currently at 2.556, essentially right in line with our "line in the sand" separating weakness/stagnation from a potential post-FOMC bounce back.  There is no other scheduled data on the day, and trading has been typically slow for a Monday.