So far, today has been more about a relatively contained, sideways momentum in response to a more significant movements in the overnight session.  Case in point, 10yr yields moved 5 bps between Friday's close and today's open but have traded a tight range of less than 2bps all morning.

The 10am economic data did little, if anything, to sway Treasuries from their sideways trend or to sway MBS from their "slightly-better-than-sideways" trend.  More on that in a moment, for now, here's a look at some of the trends we're tracking on the MBS Live Dashboard:

The reluctance of 10yr yields to go any higher this morning is good, but 10's remain in their broader uptrend for now.  Moreover, EU headlines are really in the driver's seat this week, not only due to Friday's summit and its anticipation, but also because there's just not really much domestic data this week.

Even if 10's continue to weaken somewhat, MBS seem like they could cope with that fairly well for a bit longer according to recent spread behavior.  Here's a look at spreads of Fannie Mae 30yr fixed "current coupons" versus 10yr yields:

The nice second leg lower seen heading into December has allowed MBS prices to actually make some decent gains despite 10yr yields having risen during the same period (beginning in late November):