A quick one-two punch has taken bond markets to their weakest levels of the day.
First up was a headline that suggested House Republicans were looking at ways to revive the ACA repeal, and forward replacement legislation. That caused the initial jump in yields at 9:55am.
Consumer Confidence came out MUCH stronger than expected at 10am (+125.6 vs 114.0 forecast). Bonds continued to sell following the data, with 10yr yields now up to 2.378. Fannie 3.5s are down an eighth of a point from some lenders' rate sheet print times. As such negative reprices are already a possibility for the early/aggressive crowd.