Stock Lever Cuts Both Ways as Yields Bounce Higher While the gains seen in the bond market over the past 2 weeks were certainly welcome, we had doubts about their sustainability given the circumstances.  Specifically, they relied on a certain amount of weakness in the stock market, or so it would seem.  As of Monday afternoon, it still seems the same! S&Ps bounced back roughly 1.8% by the 1pm close and 10yr yields followed, moving almost 8bps higher by the same time.  4.0 MBS coupons lost 3/8ths of a point.  All this despite no new data.  Econ Data / Events Fed MBS Buying  10am, 11:30am, 1pm Market Movement Recap 09:06 AM Slightly weaker out of the gate in Asia.  Some traction early in EU session, then more weakness after German IFO data and LaGarde rate hike comments.  10yr up almost 6bps at 2.846 and MBS down a quarter point. 12:55 PM Gains at the 9:30am NYSE open followed by losses as stocks recover.  10yr up 7 bps at 2.86 and MBS down just under a third of a point. 03:51 PM Bonds were fairly flat in the early afternoon hours but just lost a bit more ground with MBS hitting new lows for the day.  4.0 coupons down 3/8ths+.  10yr not too much higher than the last update (2.862).