MBS, Treasuries Hit Best Levels Since March 7th Without any immediate motivation by way of headline or economic data, MBS and Treasuries have rallied to their best levels since March 7th.  10yr yields traded briefly in the 1.95's and are currently at 1.96.  Fannie 3.5 MBS are up 5 ticks on the day to 103-19 and were as high as 103-22 recently, a price not seen by May coupons since 3/7/11.

The stock lever is fairly well-connected this morning and broad themes of "risk-on vs risk-off" seem to underlie the moderate volume of trading, but there's no clear-cut headline motivation causing one big pop.  It's been more of a large, steady wave of price action leading bond markets to better levels.