December20th MOrtgage Market Wrap-up 2

Mortgage backed securities closed down 35 basis points today at 102.31 having fallen below the double level of support upon which they had been resting for the past few days.  Somtimes candlestick indications just don't work out.  The "safe haven" trade collapsed at least for the day today as good news about beleaguerd Spanish treasuries sped out of Europe.  Stocks had a rare strong day and MBS bonds floundered for the first time in awhile.  Such a setback may be fleeting, however, as Europe has  a long way to go.  The 30 year fixed remained at 3.875% today.