The Fed announced a change to big banks' capital requirements that would exempt Treasuries and deposits held at Federal Reserve Banks from leverage ratio calculations.

Combined with ongoing repo operations (which let banks exchange Treasuries for cash temporarily), this acts to encourage more demand for Treasuries without that extra demand damaging banks' ability to provide as much credit.  Treasuries have rallied in response with 10yr yields down almost 10bps to the lows of the day (.574).  UMBS 2.5 coupons are back in positive territory, up an eighth of a point at 103-20 (103.625).