Although MBS are just barely into positive territory and Treasuries are just now getting back to unchanged levels after morning weakness, today is about as positive as it can be.  Reason being, simply holding near unchanged levels means bonds are attempting to confirm yesterday's sharp improvements.  Either that or it's the last day of the month and there's additional demand for bonds as a result. 

Even then, it's not too difficult to accept the past 2 days as an 'in trend correction.'  There were all the following reasons:

- recent run to weakest levels of the year

- Greece-related uncertainty

- massive weakness in Asian equities markets

- supportive month-end environment for bond markets

Long story short, there were more than a few reasons that the big move made sense by the time we added Greece and Asia into the mix (forget Puerto Rico--old news).  This trend is still not our friend.  But it could begin looking more friendly over the next 2 days if data goes our way.  If it doesn't, there's no major reason for the trend to end.