MBS Live Morning: Too Soon To Entertain a Case For The Next Ceiling?

10yr yields weren't able to break convincingly below 2.72% after multiple attempts in the previous week.  Friday's final attempt was definitively crushed by Tuesday's big sell-off to open the holiday-shortened week.  The bounce jives with our expectation for sideways momentum to take the place of May's rally trend, but "sideways" is open to quite a bit of interpretation.  Yields could rise well above 3% even if broader momentum remained sideways.  They could also be content with lower ceilings.  To that end, each instance of technical support gives us a potential ceiling to consider.  With yields avoiding a break above yesterday's highs so far today, we already have our first candidate in 2.88%.

Today's only big ticket economic data is ISM Manufacturing at 10am ET.