Here's a two-part chart that does a nice job of framing today's activity in both a longer and shorter term perspective. 

2014-10-22 Lever

As you can see, we definitely had some bond-market-specific weakness this morning.  Unfortunately for the sake of accurate analysis, the weakness occurred in close proximity to the Consumer Price Index (CPI) data.  This logically resulted in media outlets pinning the weakness on CPI, but the two were completely unrelated.

The factual culprit for this morning's weakness was a big corporate bond offering from Verizon.  They did the same thing last fall and bond markets took a big, mysterious hit then too (though the past example was a much bigger deal than today's).  Here's the coverage from last year's.

The nice thing about weakness induced by corporate bond offerings is that it's the sort of thing Treasuries/MBS can get over fairly quickly.  Indeed we find trading levels to have stabilized shortly thereafter and volatility has been decreasing ever since.

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
100-19 : -0-01
FNMA 3.5
103-22 : -0-01
FNMA 4.0
106-09 : +0-00
2 YR
0.3740 : +0.0075
10 YR
2.2340 : +0.0070
30 YR
3.0010 : +0.0010
Pricing as of 10/22/14 1:32PMEST

Morning Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
9:31AM  :  Bond Markets Losing Ground After Strong Overnight Session

Live Chat Featured Comments
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Matthew Graham  :  "Refresher on Verizon:"
Matthew Graham  :  "The fact that one of them is Verizon is more than enough to explain the quick, weird move."
Matthew Graham  :  "ah, looks like a few big corporate bond deals in the works. Just announced before the move."
Matthew Graham  :  "something is up, but not sure what yet. Correlated movement in European bonds, Dollar/Yen, and stocks"
Tim McNerney  :  "steep bounce....what up?"
Matthew Graham  :  "RTRS- U.S. SEPT CPI +0.1 PCT (+0.0863; CONSENSUS UNCHANGED), EXFOOD/ENERGY +0.1 PCT (+0.1393; CONS +0.2 PCT)"
dshpuntov  :  "Just read the day ahead, Matt, great read. Here's to hoping it's spot on!"
Matt Hodges  :  "great analysis. some of your finest work, MG"
Matthew Graham  :  "
A new 'Day Ahead' has been issued:
One Reason Bonds Might be Close to Rallying Again"