Last week ended with the hope that rates were breaking below the uptrend that had been in place since mid-April.  Certainly, if we had to judge that breakout from one day's trading, Friday was enough to get us well clear of the trend.  As always, however, we wanted to see the breakout exhibit some staying power.

Arguably, it did that today, but about as timidly as possible.  10yr yields remained under the 2.35% technical level (any higher, and we may well have questioned the breakout) but didn't end the day much lower than that (2.343%).  Fannie 3.5 MBS shed 3/32nds of a point to end at 102-18.

If there's a saving grace that frames today's moderate weakness in a more positive context, it's that stocks managed to eke out an all-time high close, although intraday highs remained elusive.  

The morning's economic data was relatively inconsequential for the price movement in bonds.  The rest of the week remains light on data and scheduled events.