There are a lot of pieces on the board at the moment for the bond market rally that's been intact since mid-March.  That rally began with a friendlier-than-expected set of Fed rate hike forecasts, but the baton was quickly passed to political drama and geopolitical concerns (healthcare bill, Syria, North Korea, French election, British general election, etc).

Over the past few days, we've seen the US-related issues fade to the background while European issues have taken the spotlight.  Yesterday it was British PM May's call for an accelerated general election that hurt EU stocks and helped bonds.  Today it was a partial rethink of yesterday's gut reaction combined with several other factors (increased supply, strong data, French election forecasts) that pushed European markets back in the other direction.

The European bounce came at the right time for US bond market technicals.  Yields had just hit "the gap" between 2.15 and 2.17% created on the way up in November.  Markets love to fill gaps.  The first visit tends to be a bounce, and there were no objections to that game-plan, given the European momentum overnight (toward higher bond yields and stock prices).  

In fact, Treasuries weakened almost exclusively during European bond market trading hours and leveled off immediately upon the European close.  But don't take my word for it:

2017-4-19 close

Interestingly enough, the bigger-picture implications were discussed in The Day Ahead, as well as the daily Huddle/video available to MBS Live subscribers.

MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.
FNMA 3.5
103-01 : -0-08
10 YR
2.2160 : +0.0370
Pricing as of 4/19/17 4:46PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
10:11AM  :  ALERT ISSUED: Beware The Bounce--Temporary Though it May Be

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Jason Anker  :  "doing you a favor, they know about the gap and whats to come"
Nathan Miller  :  "we never RP better yesterday + they took some this morn so that seems like enough"
Oliver Orlicki  :  "No reprices today....."
Matthew Graham  :  "indeed"
Andy Pada, Jr.  :  "hasn't he been all over the spectrum lately?"
Matt Hodges  :  "wow...transparency and honesty"
Matthew Graham  :  "last one is interesting (not that it's a surprise, but interesting how forthright he is about it)."