Bonds were roughly unchanged to start the domestic session, but began rallying heading into the 9am hour.  Actually, the yield curve began moving right at the 8:20am CME open, and momentum in curve trading eventually spilled over to the longer-end of the curve (which is what we care about as mortgage folks).  In other words, 2yr/10yr spreads tightened at first due to the selling of 2yr Treasuries, but then by the buying of 10yr Treasuries.

That got us down to 2.95+ in 10yr yields before a Trump tweet that threatened re-escalation of the US/China trade war.  Stocks have sold-off a bit on this headline and bonds have picked up just a bit more ground as a result.  10yr yields are now under 2.95% for the first time since September 13th.  Fannie 4.0 MBS are up 2 ticks (0.06) at 100-29 (100.91).