December 10th Mortgage Market Wrap-up

MBS prices are up +15/32 (FNMA 30-yr 5.0 at 101.38), far above the initial price level at -3/32. Favorable repricing took place.  No economic data came out today. The spread between MBS and Treasuries narrowed, which pushed MBS prices higher. Treasuries posted small losses today. The 3-yr Treasury auction received close to average demand. The Dow rose 70 points. Jobless Claims, the Trade Balance, and Import Prices will be released tomorrow. There also will be a 10-yr Treasury auction at 1:00 et.