November 27th Mortgage Market Wrap-up 3

Mortgage backed securities (MBS) closed up 25 basis points today at 105.12 having secured their spot above the 25  and 50 day moving averages.  Bonds were boosted today by a strong auction of $35 billion two year notes which received an "A" rating.  In addition, this afternoon Senate majority leader Harry Reid made comments that little progress had been made toward solving the "fiscal cliff" issue.  This was bad news for stocks and reason for bond traders to buy.  The 30 year was available at 3.75% today.