Mortgage backed securities (MBS) closed down 25 basis points today at 104.66 having dropped down to hit support offered by the 25 day movinga average prior to bouncing off it and closing a mere 13 basis points above it. With a dearth of distress in Europe for the moment and a warmer attitude from the Fed with regard to the likelihood of QE3, stocks rallied and the bond sold off on the good news. The Dow closed up 162 points and the 30 year fixed was still availabe at 3.75% for parts of the day.
Comments(0)