October 26th Mortgage Market Wrap-up

Mortgage Backed Securities (MBS) closed down 34 basis points today at 100.25.  The drop brought MBS bonds below both the 50 and 200 day moving averages and just above support at the 100 day moving average.  It was an unusual day in that bonds, stocks and oil all sold off on the same day.  The record Treasury sales and the end of the Treasury buyback caused the downwward pressure.