June 4th Mortgage Market Wrap-up 2

Mortage backed securities (MBS) closed down 37  basis points today at 104.94 having fallen from their lofty perch after an incrediable three day run up of 150 basis points.  The Japanese candles seem to indicate a short term selloff.  As we have seen, however, just one whiff of the financial stench from our friends across the pond could re-generate the "safe haven" trade and send bonds flying once again.  The 30 year fixed which had been at 3.625% Friday was predictably back up to 3.75% today.