Treasuries have safe haven appeal on a global scale.  This is frequently seen when Asian markets are open for the first few hours of each trading day before European markets open.  During that time, Treasuries are one of the most logical assets in the search to avoid risk--especially when the risk is focused on Europe.  As such, it's not uncommon for overnight (and especially "over-the-weekend") events to have their biggest impact on domestic rates before 3am.

This was the case today as 10yr yields opened at 2.274 and traded mostly under 2.30 before Europe cam on line for the day.  From that point on, rates drifted gently higher, despite remaining in positive territory day-over-day.  By the start of the domestic session, 10yr yields were just over 2.30 and MBS opened just over a quarter point better on the day. Stronger ISM data and early stock market gains made for some mid-morning weakness, but it's leveled off since 11am.

In the bigger picture, rates remain well-within June's range.  Greek drama effectively provided a boost for bonds within that range, but so far, nothing more.