3pm Closing Marks...

MBS has outperformed the yield curve all day (Spreads have tightened).

FN30_________________________                GN30______________________

FN 4.5 -------->>>> +0-01 to  100-20                   GN 4.5 -------->>>> -0-01 to  100-26

FN 5.0 -------->>>> +0-03  to  101-24                  GN 5.0 -------->>>> +0-02 to  101-31

FN 5.5 -------->>>> +0-02  to  102-09                  GN 5.5 -------->>>> +0-02 to  102-15

FN 6.0 -------->>>> +0-01  to  103-00                  GN 6.0 -------->>>> -0-00  to  102-29

Fannie Mae is doing some more guidelines relaxation...

This reverses a reg. change that was implemented only a few months ago...should be helpful for all those speculative buyers who bogged down their personal balance sheet with too many fixed expenses.

To read the entire announcement...CLICK ON ME

Treasuries are trying to rally ahead of tomorrow's three year note auction and equities are doing some consolidating...