April 13th Mortgage Market Wrap-up 2

Mortgage backed securities (MBS) closed up 25 basis points today at 103.44 having remained above all the technical levels of support and inched ever closer to the all time high level less than 80 basis points above.  A slowing in China's economic prodution amounted to an 11% reduction from last months lofty numbers.  Bad economic news like that is, as we all know by now, good for bonds.  Interest rates are, of course, the direct beneficiaries.  I quoted a 5/1 ARM today at 2.75% and 30 year was at 3.875%.