Federal Reserve Chairman Ben Bernanke offered some calming words for the mortgage-backed securities market in his semiannual Humphrey-Hawkins testimony before Congress on Tuesday and Wednesday.

As a result, the market’s performance became somewhat more directional with interest rates (tightening in rallies, lagging in sell-offs) compared to underperforming in both rallies and sell-offs as they mostly had been since release of the minutes of the recent Federal Open Market Committee Meeting last week.

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