July 9th Mortgage Market Wrap-up 2

Mortgage backed securities (MBS) closed up 16 basis points today at 105.88 once again having closed in rarified air above all resistance and at the highest level ever for the 3.5% coupon bond.  Bond traders took advantage of a moderately poor day for stocks to further  consolidate their gains.  It will be interesting to see if this trend can sustain itself.  Slower growth across the planet re-kindled the "safe haven" trade as yield on Spanish bonds soared above 7%.  The 30 year rate was at 3.50% today with no points.