Treasuries have lost a bit of ground this afternoon with weakness setting in right after Europe closed for the day.  Domestic equities hit their lows as the same time as Treasury yields and both have been moving gently higher since then.

MBS, on the other hand have been going the other direction--improving during the PM hours.  2.0 UMBS are now up an eighth of a point on the day trading just under 103.25.  The  outperformance lines up with the end of today's 30yr fixed UMBS buying operation from the Fed.  Given all of the outperformance since mid-September, MBS would be hard pressed to keep this trend going if Treasuries can't break convincingly back into their previous range (i.e. under 0.72).