January 11th Mortgage Market Wrap-up 2

Mortgage backed securities (MBS) close up 19 basis points at 102.97 having remained safely above the double support levels offered by the 25 and 50 day moving averages.  Despite the fact that the government incurred an additional $21 billion in long term debt today, the 10 year note auction receeived an A- rating.  The Fed has been buying mortgage backed securities with the proceeds of other holdings and speculation that they will continue has investors high on MBS bonds.  The 30 year fixed was available at 3.875% today