Back in September, the epic corporate bond offering by Verizon (more than double the previous record!) proved to be such a factor for broader bond markets that it marked the first time we've discussed and individual firm's corporate issuance.

Read More: What Does Verizon Have to do with the Mortgage Market?

While there's no comparable deal in play at the moment, the corporate market is a big enough consideration this week that it's been accounting for some of the paradoxical strength and weakness, running counter to the economic data or lack thereof.  In this way, it's like an unseen hand, and today it gave us a bit of a lift when we might have continued at weaker levels otherwise.

The weakness itself was easy enough to source.  Empire State Manufacturing data was much stronger than expected and the uptick in producer prices certainly didn't hurt.  This took Fannie 4.0 MBS down to 103-14 at the weakest levels of the day, but we're now drifting out at 103-19 thanks to afternoon improvements most likely driven by corporate rate-lock unwinds (read the Verizon piece above for more explanation on that). 

MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.
MBS
FNMA 3.0
95-19 : -0-06
FNMA 3.5
100-01 : -0-04
FNMA 4.0
103-19 : -0-02
Treasuries
2 YR
0.3945 : +0.0125
10 YR
2.8931 : +0.0241
30 YR
3.8248 : +0.0248
Pricing as of 1/15/14 5:02PMEST
Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
2:36PM  :  MBS Close to Reentering Positive Territory
8:53AM  :  ALERT ISSUED: Bond Markets Lose Ground After Econ Data
MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Justin Harward  :  "Has there been any new development on the upcoming (suspended) LLPA changes?"
Ted Rood  :  "They are on indefinite hold per Mel Watt, "under review""
Justin Harward  :  "any time frame given on how long they plan to review? personally, I think a proper review would take at least a decade but what do I know"
Ted Rood  :  "he didn't say, but believe he did mention it would be at least 90 or 120 days prior notice if/when they are adjusted."
Matthew Graham  :  "which is "zero days" for 60 day locks"
Matt Hodges  :  "do you think he knows that, Matt?"
Matthew Graham  :  "I don't know. I'm guessing he does actually."
Matt Hodges  :  "that would be refreshing. plus, he pulled the LLPAs on sound reasoning"
Matthew Graham  :  "let's slow our roll here for a sec though... for anyone newer to the issue or not following. If this is confusing anyone, 120 days = 0 days for 60 day locks because of the second half of this post: http://mndne.ws/1dwxhqb"
Matthew Graham  :  "RTRS- FED'S EVANS: FED WILL NOT PREMATURELY REDUCE ACCOMMODATION IN ECONOMY WITH HIGH JOBLESSNESS, LOW INFLATION "
Matthew Graham  :  "RTRS- EVANS: THEORETICALLY IF DATA COMES IN WEAKER, COULD PAUSE TAPER, BUT FOCUS IS NOW ON FORWARD GUIDANCE "
Matthew Graham  :  "RTRS- EVANS: IF DATA COMES IN STRONGER THAN EXPECT IN MARCH, COULD TAPER AT MORE AGGRESSIVE PACE"
Chip Harris  :  "Anyone know how long the "disaster county" tag remains? Have a lender asking for a 2055 on a HARP loan for the floodin g that happened last summer."
Ross Miller  :  "Well we still are not getting any PIW"
Ross Miller  :  "your lender will have a list of all counties/parishes which are included in the disaster list for every state."
Alex Gonzalez  :  "does anyone know of a site I can go to to find out what states require brick and mortar to do business there?"
Dan Clifton  :  "NMLS"
Dan Clifton  :  "click on the state requirements"
Alex Gonzalez  :  "Thanks Dan.., I did but that only gave me which states were accepting the UST national test. Unless I am blind.., which could be possible, it did not give a brick and mortar breakdown."
Economic Calendar
Time Event Period Actual Forecast Prior
Thursday, Jan 16
8:30 Core CPI mm, sa (%)* Dec 0.1 0.2
8:30 Initial Jobless Claims (k)* w/e 328 330
8:30 Continued jobless claims (ml)* w/e 2.848 2.865
10:00 NAHB housing market indx * Jan 58 58
10:00 Philly Fed Business Index * Jan 8.6 7.0