Mortgae Backed Securities (MBS) prices reacted favorably to reports released this morning showing jobless claims continue to rise, consumer spending declined,inflation slowed,orders for durable goods dropped, applications for refinances surged and personal income fell.

Gasoline prices have fallen 50% in two months leading to a 1.1% plunge in overall prices giving Americans more cash to spend for the holidays. Market will close early today at 11am pt. Trading volume is light but volatile.

Cheers,

Ian R Bennett