December 23rd Mortgage Market Wrap-up

Mortgage backed securities (MBS) closed down 41 basis points today at 98.59 now more than 100 basis points below resistance above.  Despite a good reading on inflation from the Personal Consumption Expenditure (PCE) Index, a further reductiton in initial job claims was enough good news for bonds to lose ground.  Bond traders quit early at 2PM and will be off tomorrow in observation of the Christmas holiday.