Bonds were near their weakest levels of the day with 10yr yields pushing over 4.33% ahead of the 7yr Treasury auction.  Unlike yesterday's 2 and 5yr auctions, this one was met with decidedly stronger demand, even if it required higher yields to generate that demand.  

The bid-to-cover at 2.74x vs 2.54x is the highest in several years at least.  One could read it as voting for a supportive ceiling for yields--i.e. "OK, rates are finally high enough to buy some bonds."  Unfortunately, the 7yr Treasury isn't the best representative of the sector, but it's nonetheless been worth a recovery today.

MBS are now up 2 ticks (.06) and 10yr yields are at their lowest levels of the day at 4.291.