European bond yields are surging lower into the close (their close).  Germany's 10yr Bund has dropped 3bps in the past hour alone.  This is the latest part of the trading day for Europe, so liquidity could be causing exaggerated movement.  We could also be seeing early 'year-end' buying.

Either way, there has been a modest spillover into domestic bond markets, with Treasuries and MBS making gains since 10:30am.  While those gains are nothing on the scale of the European rally (see the chart below), they've been enough to get MBS up an eighth of a point (Fannie 3.0) and 10yr yields down 2bps to 2.225.