The bond market weathered the extended weekend without any drama, trading mostly flat during Asian market hours last night and then opening almost perfectly unchanged this morning (Treasuries were closed during European market hours).  Since then, however, early domestic trading has favored selling to the tune of 2-3bps in 10yr yields and roughly an eighth of a point in 2.5 MBS.

The weakness is mild enough as to obviate the need for deep analysis or explanation.  If we have to assign blame, there's no question that corporate bond market continues adding supply pressure to an already over-supplied bond market.  Combine that with another decrease in the Fed's scheduled Treasury purchases and a few bps of weakness is actually quite a decent start.

There are no significant events on tap today, although the mortgage industry continues waiting on more official assistance measures for the troubled servicing sector.  Ginnie Mae made its PTAP facility official at the start of the weekend, but no comparable plan is currently in place for conventional loans.