Shortly after the NYSE open, equities markets bounced off the lowest levels in more than a month and began to move higher.  European bond yields moved to the highs of the day during the same time.  Both of these factors are putting pressure on US bond markets.

10yr yields are still down nearly 4bps on the day, but up roughly 3bps from the lows.  Fannie 3.5s are still up a quarter point on the day, owing to a strong overnight session, but are down more than an eighth of a point from some lenders' rate sheet print times.  As such, some of those lenders may already be considering negative reprices.