A $1 billion sale in conventionals late Thursday afternoon capped off a rather quiet week within the mortgage market, as market observers recommend a down-in-coupon trading.

"There was a big seller, a money manager," said a mortgage-backed trader. "He sold some mortgages and some asset-backeds. That's what dominated the market. Otherwise, it was pretty quiet." The sale, which was reported to have been an asset swap, was said to be in the 7% coupon.

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