January 23rd Mortgage Market Wrap-up 5

Mortgage backed securities (MBS) closed up 41 basis points today at 104.06 having once again bashed through double resistance offered by the 50 and 100 day moving averages.  Today's  gain came in large part due to a sell off in stocks caused in large part because China's index of manufacturing fell below the 50 mark sending it into retrograde.  Bond market volatility may continue.