Market Update Thursday December 11th 2008

Mortgage Backed Securities (MBS) prices are still on the upswing this morning.

The FNMA 4.5% coupon, which gained 75bps yesterday, is up another 50bps this morning!

Rates in the high 4's are possible, paying origination.

MBS were helped by Jobless Claims, +58k to 573k and Trade Deficit data showing exports dropped for the third consecutive month.

Treasury auctions $16 billion in 10yr notes later today, weak demand could lead to sell-off.

Cheers,

Ian Bennett
Mortgage Banker