Gannie Mae (GNMA) bonds are outperforming agency bonds, improving FHA/VA rates.

Stocks dropped and Treasuries advanced after Retail Sales plunged in Dec. as job losses and declining home & stock values squeeze households.

Inventories fell as businesses continue to cut stockpiles. Import prices decreased as commodity costs eased, restraining inflation.

The Fed remains poised with their checkbook to step in and prop up Mortgage Backed Securities (MBS) prices if the rollover does not lead to progressive spread tightening by investors.