MBS Update: Counting Down til Dismissal

By: • Wed, Dec 24 2008, 12:59 PM

After reaching intraday highs of 101-16 and 102-02 the FN 4.5 and FN 5.0 sold off but has quickly rebounded off of key short term technical support levels. Trading volume is WELL BELOW NORMAL so pricing is very volatile.

FN 4.0: +0-13 at 100-05

FN 4.5: +0-07 at 101-13

FN 5.0: +0-06 at 102-00

FN 5.5: +0-04 at 102-10

FN 6.0: +0-02 at 102-20

Here are two charts to illustrate the movements...the yellow lines are retracement level which are acting as support at this point in the session.

SIFMA recommends that bond markets close at 2pm today. We dont think too many will argue.