If bonds happened to move higher in yield by more than they did today, we'd be talking about how the announcement of a US/China tariff extension put upward pressure on rates. As it stands, we can still witness just a bit of that upward pressure, but not enough to consider this anything other than an extension of the same old sideways range that has endured for essentially the entire year so far.
Tariff news caused modest pressure in the overnight session but 10yr yields weren't interested in breaking above 2.69%. That continued to be the case even as stocks pushed up to the highest levels since December 3rd by 11am. 2 hours later, the decent 5yr Treasury auction helped bonds move down from the intraday ceiling to end the day at 2.67%. Fannie 3.5 MBS lost 3/32nds (0.09) on the day. Both MBS and Treasuries stayed inside Friday's range.
Tomorrow brings the semi-annual congressional testimony from Fed Chair Powell. Given the rapid increase in new info coming from multiple Fed speakers over the past week, markets are looking for a consensus from Powell. That consensus may determine momentum for the rest of the week. He starts speaking at 10am (ET) with prepared remarks before moving into the Q&A (which is typically all about political grandstanding, but can occasionally draw out a valid, market-moving answer).