The overnight session was nominally weaker for Treasuries, but there was limited activity overall as Japan (the key participant in US Treasuries during the first half of the overnight session) was out on holiday.  The weakness extended just slightly as domestic traders got into full swing (officially, after the 8:20am CME pit open), but it was short-lived.

10yr yields held a supportive ceiling just over 2.73 and haven't been back since.  A return trip was certainly at risk heading into the morning's key data release--Consumer Confidence--but that risk faded when the data came out weaker than expected.  Perhaps the most important aspect of the data was that the labor differential was a bit weaker, and traders look to that component as one of the leading indicators for Friday's Nonfarm Payrolls data.

A cautious move back to unchanged levels ensued, and that's about all there is to say about that!  Treasuries are lower in yield since 8am despite stocks being at the same or better levels.  MBS have taken measured steps back toward 'unchanged' and are currently just 1/32nd away.