Mortgage-Backed Securities (MBS) spreads.....>

US MBS: Mortgage-Backed Securities (MBS) spreads ended Tues mainly firmer into

the FOMC meeting. MBS had opened NY better bid, then turned mixed later, and

finally improved into the close. 

- One trader quipped, "Somebody said that the MBS turned their frown upside

down" into a smile as the market improved. He cited "decent buying going on" but

"relatively limited activity" into the FOMC meeting. 

- CONGRESS/HOUSING: In related US Congress matters, US House and Senate

negotiators hurrying to finish a Republican tax legislation for a vote next

week, said the Associated Press. House Rep. Kevin Brady said "we're on track to

finish" this week, it said. 

- A recent wrinkle seems to be that negotiators scaled back a mortgage interest

deductions, to let homeowners "deduct interest on the first $750,000 of a new

mortgage," it said; that as a House bill would have limited the deduction to the

first $500K of a new mortgage, while the Senate version would have kept a

current $1.0 mln limit. Such provision would not affect current mortgages, AP

said.