Market Update Wednesday December 10th 2008

Mortgage Back Securities (MBS) prices have rebounded to trade at the high of the session, after an expected drop at the opening.

Wholesale inventories fell by the most in seven years as the largest decline in demand EVER caused companies to scale back, while sales dropped 4.1% in October.

Treasury will auction 3yr notes today which increases the supply but will also gauge investors appetite for risk.

Hopefully lenders will price in Tuesdays positive close, and this increase and provide lower rates today, than yesterday.

Cheers,

Ian Bennett