May 16th Mortgage Market Wrap-up 2

Mortgage backed securities (MBS) closed up 9 basis points today at 104.38 having set yet another new record despite being grossly overbought.  The stochastic meter looks like the temperature gauge on my 1939 Buick in the middle of a traffic jam on a scalding August afternoon; through the roof.  The minutes from the recent Fed meeting revealed that some voting members of the Open Market Committee are in favor of some easing activities should the economy continue slowing.  Stock traders would lap that up.