It was a straightforward trading day today.  Overnight weakness came courtesy of stronger econ data in Germany and the resulting sell-off in European bonds.  The rest of the weakness was a product of a "risk-on" move stemming from updates on US/Mexico trade relations.

As with any risk-on move, stocks rallied at the expense of bonds.  To bond market optimists, the weakness wasn't too terrible considering the fairly strong surge toward new all-time highs in stocks.  More cautious players may note that the bounce coincides with technical cues (overbought stochastics, as seen in the Day Ahead, as well as the recent range floor at 2.80-2.82% in 10yr yields) and the risk of more trade progress with Canada.

10yr yields ended the day up 3.25bps from Friday's latest levels, but up only 2bps from Friday's official 3pm closing bell.  Again, that's not too bad considering the move in stocks.  MBS did even better, losing only 3 ticks in price.  That means Fannie 4.0 coupons never even dipped back into Friday's weakest territory.