November 10th Mortgage Market Wrap-up

Mortgage backed securities (MBS) closed up 12 basis points at 100.00 having bounced around like a pin ball before coming to rest just below tough resistance posed by the 100 day moving average.  During the day bonds traded in a 70 basis point range having gone all the way down to the next level of support before bouncing up to touch resistance.  This action created a Bullish Hammer Pattern in the candlesticks which may stall the recent selloff in MBS markets.