Mortgage backed securities (MBS) closed down 9 basis points today at 100.94 just below the 100 day and 50 day moving averages. There were no economic reports today to influence trading. Despite another selloff in stocks, MBS traders were unable to push through these two formidable levels of resistance. Often when this pattern takes place bonds have exhausted there upward trend. If, however, stocks keep heading downward, bonds may still have some chance of advancing.
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