Last night, Treasuries attempted to play it safe ahead of the European session by rallying sharply on news they figured would have a big positive effect during the overnight session.  They were partly right as Europe did open much stronger, but the weakness was pervasive after that.  It resulted in 10yr yields hitting the domestic open right in line with the levels seen BEFORE yesterday's ECB/Greece news.  In other words, "like it never even happened."

Throughout that process, MBS have played it closer to the vest.  They didn't rally as much yesterday afternoon and they didn't lose as much ground this morning.  On top of that, they improved moderately throughout the day as Treasuries generally went more sideways.  Even though recent history suggests NFP is no longer the massive consideration it once was, it's still worthy of a sideways consolidation heading into it.  That's probably all we're seeing here in terms of today's narrow trading ranges during the domestic hours.