Bond markets had an utterly copacetic day, starting out just barely positive, gaining nominally with each round of economic data and continuing to trickle higher into the close.

In one of the MBS Live updates this morning, we noted that the reaction to the data did NOT suggest markets were adjusting to "worse-than-expected" economic news, but rather simply not seeing much by way of positive news.  Put another way, here we are...waiting for something (anything?) to discredit what may turn out to be an overly pessimistic jobs report last week, yet nothing has been quite bullish enough to definitively accomplish that.

Today's data, in particular, expressed its weakness at the internal level.  In fact, judging by headlines (opposite of "internal"), the only weak report was NAHB's Housing Market Index.  The subcomponents told a different story, especially for Jobless Claims where Continued Claims surged back over 3 million and for the Philly Fed Index which saw sharp declines in New Orders and the 6-month outlook.

This economic weakness along with the corporate hedging considerations discussed this morning is more than enough to make for the steady improvements.

MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.
FNMA 3.0
96-01 : +0-14
FNMA 3.5
100-13 : +0-12
FNMA 4.0
103-30 : +0-10
2 YR
0.3866 : -0.0034
10 YR
2.8414 : -0.0426
30 YR
3.7726 : -0.0334
Pricing as of 1/16/14 4:50PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
10:21AM  :  Bond Markets Stay Strong Following Mixed 10am Econ Data
9:02AM  :  Bond Markets Stronger After First Round of Economic Data

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Bob Van Gilder  :  "anyone else experiencing issues with Streetlinks as far as delivery? (maybe i just have a newbie appraiser)"
Gary Bracht  :  "BVG How long have they had the request?"
Adam Shelton  :  "Anybody know of a wholesale lender who will do a USDA deal less than 3 years out of BK/Foreclosure? USDA office has already verified they will guarantee the loan."
Curt Sandfort  :  "Adam, try Chase or any wholesaler that sells to Chase."
Bob Van Gilder  :  " Gary:1/7/14---initial delivery date 1/10/13 fee paid, assignment accepted by appraiser"
David Dickens  :  "BVG I have had nothing but bad experiences with Streetlinks services so don't use them anymore"
Jeff Anderson  :  "AS, I just did one with Chase. Less than 3 years and had extenuating circumstances. Closed in November."

Economic Calendar
Time Event Period Actual Forecast Prior
Friday, Jan 17
8:30 Housing starts number mm (ml)* Dec 0.990 1.091
8:30 Building permits: number (ml)* Dec 1.015 1.017
9:15 Industrial output mm (%) Dec 0.3 1.1
9:55 U.Mich sentiment * Jan 83.5 82.5