Bond markets are just slightly weaker, and have thus far been doing a decent job of keeping those losses contained. There hasn't been much by way of 'market-movers' with cues instead coming from technical levels and traders reacting to other trades ("tradeflow considerations"). 

Treasuries were actually stronger overnight, in response to European bond market strength.  But as soon as the domestic market began firing on all cylinders, the aforementioned tradeflows kicked off a very fast, but fairly well-contained bout of snowball selling.  That brought 10yr yields from 2.594 to 2.629 in fairly short order.

It's a good idea to keep an eye on 2.625 as a sort of line in the sand to further weakness in Treasuries.  10yr yields are currently hovering in the 2.61's, and have been for about 2 hours now. 

MBS are near their lows of the day, off 5 ticks in Fannie 3.5s and 2 ticks in 4.0s.  Keep in mind that today's prices reflect June coupons while yesterday's were May coupons.  That means the drop in prices looks much bigger than 2-5 ticks (more like 12-15).  But in terms of actual movement, June MBS prices are only down the 2-5 ticks.