This chart was scaled based on everything that came before yesterday in order to see how big yesterday was by comparison.  The red line is the Swiss Franc vs US dollars.  The takeaway here is that the move was big.

2015-1-15 franc

You may ask yourself "why compare the Franc to US dollars as opposed to the Euro?"  You may also ask yourself how did you get here?  Where is that large automobile?  I'll answer those questions some other time.  For now, let's stick to why the chart above includes Swiss Francs vs Dollars.  The answer is as simple as a chart where the red line is the more germane Swiss Francs vs Euros.

2015-1-15 Franc2

In other words, the move was too big to put on a chart with any other mainstream financial instrument and still be able to observe relative movement that doesn't just look like a big, red vertical line and a bunch of horizontal lines.  The takeaway here is that the move wasn't just big, but that it was one of the biggest forex stories of the decade.

Not only was it big, but it was a blindside.

Not only was it a big blindside, but it's also open to interpretation.  Some are suggesting this means the Swiss National Bank is privvy to what the ECB has in the works for next week and are trying to get ahead of it.  Others are suggesting the SNB is aware of the ECB's plans and doesn't see them working.  Either way, markets will continue being driven by the tradeflows set in motion yesterday, and all we can do is watch and  react.  So far, that's been a pleasant experience for fans of low rates.  Just remember the level of drama required for yesterday's rally and keep in mind that it's not a sustainable source of bond market positivity.

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
103-10 : +0-00
FNMA 3.5
105-18 : +0-00
FNMA 4.0
106-30 : +0-00
2 YR
0.4390 : +0.0190
10 YR
1.7270 : +-0.0010
30 YR
2.3740 : +0.0070
Pricing as of 1/16/15 7:39AMEST

Tomorrow's Economic Calendar
Time Event Period Forecast Prior
Friday, Jan 16
8:30 Core CPI mm, sa (%)* Dec 0.1 0.1
9:15 Industrial output mm (%) Dec 0.0 1.3
9:15 Capacity utilization mm (%) Dec 80.0 80.1