December 11th Mortgage Market Wrap-up 3

Mortgage backed securities (MBS) closed down 9 basis points at 104.91 today after opening down a step.  The MBS bonds fell below the 25 and 50 day moving averages today ending a strong run.  Optimism over reaching a solution drove money into stocks today and kept bonds at bay.  Stocks were up as high as 136 points during the session before Senate Majority Leader Harry Reid said that he doubted an agreement could be reached by Christmas.  The 30 year closed the day at 3.375%.