November 26th Mortgage Market Wrap-up 3

Mortgage backed securities (MBS) closed up 31 basis points today at 104.88 having not only pushed through the double level of resistance offered by the 25 and 50 day moving averages but also closed above them.  This bodes well for MBS bonds in the short run.  We must keep in mind, however, that the Treasury is auctioning $99 billion worth of offerings this week.  That could take its toll on pricing.  Stocks sold off this morning prior to re-gaining 60% their losses by the close.  The 30 year was at 3.375% today.