December 22nd Mortgage Market Wrap-up 5

Mortgage backed securities (MBS) closed up 7 basis points today at 104.19 having remained above support offer by the 25 day moving average and below resistance at the 104.34 level.  The Treasury auctioned off $27 billion of two year notes today.  Despite the fact that the auction garnered just a C+ rating and a rising stock, MBS bonds still showed a gain.  The 30 year was at 4.0% today.