MBS and Tsy's had a decent morning in terms of price.  And though that "decency" has been under steady pressure since then, the 4.5 is still up 4 ticks at 100-07 and the 10yr continues to operate within its recent range with 3.84 as support.

Nonetheless, that's about 4bps higher from the best levels of the AM in the 10yr and about 5 ticks off MBS best levels.  After the volatility surrounding Friday's NFP, both MBS and Tsy's are having an "inside day," meaning that Friday's High was higher than today's and Friday's low was lower.  In other words, today's trading range lies "inside" Friday's.  Just a quick way to refer to decreasing volatility and no deviation from last sessions range. 

Given that today is fairly light, even vacuum-like, in terms of data, and that tomorrow marks the inception of auction week (forget today's 10yr Tips), it's not too surprising to see this consolidation of price and yield ahead of more meaningful guidance.  There's an outside chance that there's enough weakness in MBS prices to see a reprice for the worse, but then again, we'd expect the "moderating range" motif to continue.