After starting out slightly weaker this morning, both Treasuries and MBS are moving into positive territory, led by a much stronger move in European bond markets.  One comment from ECB President Lagarde is particularly significant:

ECB'S LAGARDE SAYS OUR DECISIONS WILL MAKE SURE THAT HIGHER BORROWING NEEDS BY FISCAL AUTHORITIES ASSOCIATED WITH THE NECESSARY FISCAL RESPONSE TO THE CRISIS WILL NOT TRANSLATE INTO MATERIALLY HIGHER INTEREST RATES FOR THE PRIVATE SECTOR

Translation, we're going to hold rates lower across the curve so governments can finance stimulus. Perhaps this is her way of hitting back at a fairly underwhelming response to last week's ECB announcement and press conference--a reminder of sorts about a commitment to low rates.

German Bunds are more than 5bps lower peak to trough.  US Treasuries have gained nearly as much, with 10yr yields moving by exactly 5bps peak-to-trough (now about 1bp lower versus Friday's close at .885%).  2.0 UMBS are up an eighth of a point and in line with Friday's best levels at 101-14 (101.44).