You know how that Monday morning alarm clock can be the most- well... 'alarming' of the week?  It's not that different for the opening bells of various financial markets.  This week's rude awakening began in China, where the same old story continues to play out (weaker growth outlook, big drop in stocks, and further currency devaluation). This set the frantic tone for the day.

The rest of the world was already beginning to take notice in overnight and futures trading.  Germany was particularly hard-hit as it has a closer trade relationship with China, and is already in the process of bouncing back from Europe's QE honeymoon. 

Overnight Treasury trading was strong, and it became even stronger as domestic stocks opened for the day.   10yr yields ultimately hit 1.905 and Fannie 3.5s were as high as 104-20.

As with many massive, intraday moves in one direction, we've since seen a massive intraday move in another direction.  MOST of the 10yr and MBS gains are GONE.  Negative reprices are likely heading into the afternoon.