May 23rd Mortgage Market Wrap-up

Mortgage backed securities (MBS) closed up 3 basis points today at 100.12 having managed to break through resistance at the 200 day moving average before being repelled again and closing 25 basis points below.  All the European woe and angst about Greece and Italy and Spain re-kindled the safe haven trading today and money flowed from stocks to bonds.  In the end the 30 year rate was comfortatbly settled at 4.50%.