Mortgage backed securities (MBS) closed at 100.81 up 6 basis points today remaining caught betweeen the 200 day and 100 and 50 day moving averages. The three Treasury auctions went well this week. Traders breathed a sigh of relief that there would be no more auctiions through next week. As I have discussed, the huge supply of treasuries and MBS bonds out there scares investors. Bonds had been flirting with dipping below the 200 day moving average earlier in the day but the end of the week's last auction allowed them to move into the positive for the day.
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