An uncertainty over interest rates following Federal Reserve Chairman Alan Greenspan's complete Humphrey-Hawkins testimony, as well as ever-widening swap spreads and a rising index of employed costs, or ECI report, from the Labor Department, capped off an uncertain week in which mortgages ultimately fell along with U.S. Treasurys.

"Most of the spread product is in shorter maturity instruments," said one MBS trader. "People in corporates say there is lots of good demand out there, but we don't really see that in mortgages.

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