MBS remains relatively stable while the markets sort their way through the onslaught of headline news. Spreads still tighter (MBS outperforms TSYs). Some "up in coupon" positions have been vacated this morning....that is a sign of hope for lower mortgage rates but MBS will remain subdued by the behavior of the yield curve for the time being...

FN30_____________________________________

FN 4.5 -------->>>> -0-01 to 100-19 from 100-20

FN 5.0 -------->>>> -0-02 to 101-31 from 102-01

FN 5.5 -------->>>> -0-02 to 102-22 from 102-24

FN 6.0 -------->>>> -0-04 to 103-13 from 103-17

TSY Yields Higher...

Stocks Higher...

Banks Lower...

Looking past the Housing Plan for a moment....the BIG PICTURE issue remains....How does the government get toxic assets of bank balance sheets?