For a week with so much on the calendar and so much at stake, today got things off to a fairly slow start.  That's not entirely surprising, given that it had the least going for it in terms of scheduled events.  It also happened to be a Monday in the summertime.  

The overnight trading session made things look even more uneventful, with no meaningful movement during Asian market hours.  Things changed in Europe, however, with a series of state-level inflation reports (especially in Germany) serving to push European yields higher.  Anticipation for a hike hike from the Bank of England also played a part.

Bonds settled down during domestic hours, but not before edging to the highest yields in more than a month (by a few thousands of a percentage point, to be fair).  The 9:30am NYSE open brought some buying demand for bonds and selling for stocks.  Fannie 4.0 MBS ended the day down 2/32nds (.06) at 101-16 (101.50).