January 25th Mortgage Market Wrap-up

Mortgage backed securities (MBS) closed down 12 basis points today at 100.81 just over support offered by the 200 day moving average and just below the 100 and 50 day moving averages.  MBS bonds could remain stagnant for some time unless a significant economic report shakes things up.  The double resistance level above is formidable.  That combined with the tremendous supply of fixed income products in the market makes any progress without a major assist appear unlikely.