modestly stronger in Asia, moderately weaker in Europe, and now sharply weaker as the domestic session hits its stride.  Still a momentum/snowball trade (i.e. not reacting to news or events in any obvious way, or at least news/events are not the key drivers of the bigger moves).  Big block trades around the 8:20am CME open.  10yr yields highest in more than a year at 1.42%.  UMBS 2.5 coupons (only game in town now) down 10 ticks (.31) at 103-21 (103.65)

After holding a ceiling at 1.435%, 10yr yields tried (or perhaps "are still trying") to stage a bounce.  They just cracked below 1.40% briefly, but haven't flipped the switch into the sort of buying frenzy that would help confirm a near-term reversal.  Might be a tall order before the 5yr auction.  UMBS 2.5 coupons are now down "only" 7 ticks (.22) after being down more than 3/8ths of a point less than an hour ago.

Rally/recovery continued into 5yr Treasury auction with MBS turning green ultimately and 10yr yields coming within 3bps of unchanged.  The 5yr auction was a bit rough, and bonds have lost ground since then--mostly Treasuries, unsurprisingly.  MBS are still 2 ticks in the green (+0.06).

Additional MBS losses after the 1pm buying operation (concluded at 1:20pm).  MBS illiquid and more volatile since then, down a total of 6 ticks (.19) from the highs.  Treasuries are mostly holding sideways during the same time frame (but still 3+ bps higher on the day with the 10yr just under 1.38%).