Across the Curve

MBS

Mortgages are pretty much in line with swaps this morning. There is no untoward movement within the coupon stack.

Dealers report buying by the Federal Reserve and mortgage servicers.

Real money accounts have been observed going down in coupon.

One traders e mail suggested that the market was drifting into year end mode.

Yikes!!! That would be nearly three month of subdued activity. With the Open Market Desk still in the fray that does not seem likely as there (reduced)constant purchases should keep the market bid.