Bonds were slightly stronger for most of the overnight session and volumes were fairly light.  But the Moderna vaccine trial update (the one we discussed as a risk heading into the weekend) hit the wires just before 7am ET, showing even better results than Pfizer's results from last week.  This is having a logical result on Treasuries so far with 10yr yields rising immediately on the news.

That said, the spike in yields was smaller than we might have expected after having witnessed the Pfizer reaction.  Yields only rose from .885% to .93% and are currently just under that at .92%.  Perhaps the news is filling the role of confirmation as opposed to revelation.  Either way, it could have been worse.

2.0 UMBS are outperforming noticeably, which is getting to be less and less of a surprise, even as spreads vs Treasuries continue setting records.  The Fed begins a new bond buying schedule today with relatively big increases in the allocation toward 1.5 and 2.0 UMBS 30yr coupons.  MBS are currently unchanged on the day at 103-10 (103.31).