We haven't seen bond markets move this sideways all the way through morning hours in quite some time (weeks at least).  10yr  yields have been within a 0.01% range (2.539 to 2.549) after the overnight weakness leveled off into the domestic session.  Said weakness came courtesy of stronger economic data in The UK and an auction failure in Germany (they didn't get enough bids to cover the auction amount).

MBS have been outperforming on a day-over-day basis.  That means MBS prices are closer to yesterday's best levels compared to Treasury yields.  On an intraday basis, the two are moving in fairly close correlation, both neat their best levels since entering a sideways range at 8:40am. 

The extreme level of containment is most easily ascribed to the FOMC Minutes coming up at 2pm.  Markets have grown increasingly anxious for these after yesterday's comments from Dudley suggested a change in the Fed's overall exit strategy could be among the topics. 

MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.
FNMA 3.0
98-11 : -0-04
FNMA 3.5
102-14 : -0-03
FNMA 4.0
105-17 : +0-01
2 YR
0.3467 : +0.0157
10 YR
2.5392 : +0.0302
30 YR
3.4109 : +0.0359
Pricing as of 5/21/14 12:38PMEST

Morning Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
9:18AM  :  Bond Markets Weaker Overnight on European Data and Auction

Live Chat Featured Comments
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
William McGuirt  :  "10 year up +3 ?? What happened ?"
Victor Burek  :  "following the bund this morning"
John Tassios  :  "I think retail sales in Britain was better too and their bond market sold off on the news and we followed along, MG can you clarify this?"
dustin mcalister  :  "anyone see the new DU update on VA loans that caame out this weekend"
Jason Anker  :  "guess I wont need LP as often"
Amitab Mukerjee  :  "MG I saw your "juiced rates" interview - impressive. How did that come about, and will it be recurring?"
John Paul Mulchay  :  "You've earned all of our respect here for all that you do for us and the industry. I'm sure I speak for everyone that we're grateful you created this place. Looks like the cat's out of the bag now that the mainstream media is ready for some sound knowledge/input. Happy for you and your team behind the scenes."
Amitab Mukerjee  :  "Truly a phenomenal site. Like TruCar for mortgage rates"