As bond market activity gets back to more acceptable levels, the participation that's come into the market has been mostly negative for Treasuries, and slightly less negative for MBS.  Earlier, this merely resulted in slight improvements overnight moving back to unchanged levels, but in the past few minutes it's taken 10yr yields about 2bps into weaker territory, currently 2.7388.

MBS are only 1-2 ticks weaker from the last update.  Fannie 4.0s are down 2 on the day at 103-31+ and Fannie 3.5s are down 3 ticks at 100-21.  That update also noted a disconnected stock lever, but the timing of the current weakness in bonds combined with stocks presently opening stronger suggests that could be changing.

In what can only be described as a logical stroke of genius, at some point in time, Europe and some of Asia decided it would make more sense to set Monday as the Easter-related market holiday as opposed to Good Friday.  As such, the overnight session didn't begin in force until early domestic trading got underway around 6am.

The small amount of activity seen has at least been positive for bond markets, but for no discernible reason.  A limited amount of trading in Asia carried Treasury yields slightly lower.  Domestic market participants re-set yields back to Thursday's highs and have since moved them down to overnight lows.

MBS opened stronger and have moved up a few ticks since then, seeing less volatility than Treasuries.  Fannie 4.0s are up 5 ticks at 104-04 and Fannie 3.5s are up 6 ticks at 100-28. 

Note: Ginnie pricing is showing a 3-5 tick loss, but this is due to the Ginnie-only 'roll' taking place on Thursday, but not being reflected in day-over-day price changes until today.  There is no crazy weakness present in Ginnies.

There are no significant reports on the calendar this morning and in general, activity is just warming up for slightly better prospects tomorrow.

Roughly 10 minutes after the Jobless Claims data, bond market losses found support just past yesterday's weakest levels.  Incidentally, 10yr yields bounced very close to the 2.66% technical level that we're watching as a gauge of their ability to hold sideways or better in the short term.

MBS are back within 2 ticks of unchanged levels and 10yr yields are back down to 2.646.  The bounce followed equities futures 'topping out' for the morning.  They've since been relatively sideways ahead of the cash open at 9:30am.

Today continues to be wholly uneventful for bond markets.  After beginning the domestic session just barely inside yesterday's weakest levels, both MBS and Treasuries have simply been drifting sideways and slightly higher in price (lower in yield).

To reinforce the notion that this is uneventful, MBS still haven't broken into positive territory with Fannie 4.0s down 1 tick on the day at 104-15.  10yr yields are just about 1bp higher than yesterday at 2.6373.

That said, MBS are an eight of a point higher from the time of day that some lenders released their first rate sheets.  As such, positive reprices are an outside possibility for a few of those lenders, but an eighth of a point is really only the threshold beyond which reprices become possible. 

It would take a bit more positivity to make them 'probable' outside the one or two lenders that reprice most aggressively.  Additionally, as of right now, we haven't moved past that threshold.  Uneventful...

Bond markets were weaker overnight, further backing away from the geopolitical risk-driven rally that took place yesterday morning.  Stronger Chinese GDP also helped markets move back towards 'risk' (stocks and bond yields higher). 

By the open, 10yr yields and MBS were both almost perfectly back in line with yesterday's weakest levels.  So far, they've gone no higher thanks to a weaker-than-expected reading on Housing Starts. 

• March Housing Starts 946k vs 973k forecast
• February Housing Starts revised to 920k from 907k
• Housing Permits 990k vs 1008k forecast
• singe-family permits and starts rose while multifamily fell

MBS and Treasuries both improved just slightly following the data and are currently at their best levels of the morning.  Stocks are at their weakest levels of the morning--a fact that further helps bond markets in the current environment (where the stock lever has been so well connected).