I will have to be careful with how emphatically I convey today's volatility to friends and family.  Anyone who doesn't follow markets as closely would only be seeing essentially unchanged MBS and Treasury levels day-over-day.  They would be well within their right to wonder what the big deal is/was if it resulted in such insignificant changes.

First of all, that changes in trading levels from today's news are much larger than today's screens show, and they've been happening for weeks!  Bond markets love to price-in future news if they have a pretty good idea that something will happen.  In the current case, there was enough belief that some sort of stop-gap would be reached regarding an extension of Greece's bailout agreement to begin pricing in the possibility.  

While we'll likely find that the news isn't nearly as euphoric next week, markets reacted fairly sharply today, with stocks surging massively and bonds getting hit.  From the moments before the leak of the announcement to the moments after it was made official, 10yr yields traversed a range from 2.045 to 2.142.  Fannie 3.0s lost a full half point before leveling off and regaining a modicum of composure into the afternoon.

For the record, with respect to this morning's thoughts, it was indeed up to Greece to fold, and they folded indeed.  This was the less severe of the two negative possibilities, as it leaves plenty of potential drama on the table as Greece is tasked with selling the idea to a populace that expressly voted to not do what Greece just did.  We'll know more about how they'll pitch it on Monday.