Treasuries made gains during Asian market hours but saw a bit of a push back in London. With most of mainland Europe closed after having rallied nicely yesterday, British yields corrected a bit (moved higher) and US yields followed. 10s are still 3.4bps lower to start the day, but this is largely a correction of yesterday afternoon's quick month-end selling spree.

MBS, meanwhile, are right in line with their best levels of the past few days and weeks with 2.5 UMBS up 2 ticks (0.06) at 104-06 (104.19).  2.0 coupons are up 6 ticks (.19) at 102-01 (102.03).  

Today's only econ data will be Markit Manufacturing PMI at 9:45am and ISM Manufacturing at 10am.