September 11th Mortgage Market Wrap-up 2

Mortgage backed securities (MBS) closed down 16 basis points today at 103.59 having remained above the critical support levels offered by the 50 and 25 day moving averages.  Traders are placing their positions carefully as we approach two critical events.  On Thursday we will receive word from the Fed as to whether they will move once again into the accommodation mode with QE3.  Perhaps equally important will be the German Court ruling on the unlimited rescue fund.  Today's candlestick points toward a swift movement but gives no hints as to the direction.  The 30 year fixed was available at 3.50% today.