Mortgages continue to strengthen into the 3pm close. Dollar prices are just off their intraday highs and yield spreads are tighter...all while the yield curve is slightly steeper (2s vs 10s at 198.37) MBS is benefiting from a lack of new supply from originators and normal end of month/beginning of month supportive buying.

FN30_______________________________

FN 4.0 -------->>>> +0-10  to 100-06  from 99-28

FN 4.5 -------->>>> +0-10  to 101-29  from 101-19

FN 5.0 -------->>>> +0-10  to 103-08  from 102-30

FN 5.5 -------->>>> +0-09  to 104-01  from 103-25

FN 6.0 -------->>>> +0-06  to 104-25 from 104-19

GN30________________________________

GN 4.0 -------->>>> +0-11  to 100-09  from 99-30

GN 4.5 -------->>>> +0-11  to 102-03 from 101-24

GN 5.0 -------->>>> +0-09  to 103-24  from 103-15

GN 5.5 -------->>>> +0-06  to 104-08 from 104-02

GN 6.0 -------->>>> +0-05  to 104-26 from 104-21

The FN 4.5 has broken through and been able to hold it gains over our short term 101-24 resistance level. The 101-24 price mark now become short term support for the FN 4.5. The FN 4.5's attempts to break through the 101-31 price level have not been successful thus far....some lenders have nonetheless repriced for the better!!!

Stock markets have furthered their losses. The Dow is down 2.44%. The S&P is down 2.35%. The NASDAQ is down 3.09%.