Volume was light throughout the week as holidays began to take center stage. Overall, mortgages experienced better buying with interest in 5s through 6s. Participation was widespread with a continued presence from overseas with the 10-year Treasury yield holding to the 4.60% area. Originator selling averaged near the $1 billion per day area, with supply starting t including 5% coupons.

Mortgages have had an uneventful December so far. Lehman Brothers' MBS Index is flat on the month so far, with year-to-date performance an impressive 123 basis points. This compares to 83 basis points over for ABS and 124 basis points over for CMBS.

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