Good Morning. 30 min into the session MBS are a few ticks worse....the stack is outperforming the yield curve by 5 to 7 ticks.

830am marks...

FN30__________________________________

FN 4.5 -------->>>> -0-02 to 100-25 from 100-27

FN 5.0 -------->>>> -0-01 to 101-29 from 101-30

FN 5.5 -------->>>> -0-02 to 102-14 from 102-16

FN 6.0 -------->>>> -0-00 to 103-02 from 103-02

The yield curve is steepening...

Stock Futures Indicate a positive open...

A Joint Statement by the Federal Reserve, Treasury, and FDIC was released this morning....here is the link

http://www.federalreserve.gov/newsevents/press/bcreg/20090223a.htm

Here are a few excerpts...

"The U.S. Department of the Treasury, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, the Office of Thrift Supervision, and the Federal Reserve Board today issued the following joint statement"

"we reiterate our determination to preserve the viability of systemically important financial institutions so that they are able to meet their commitments"

"Currently, the major U.S. banking institutions have capital in excess of the amounts required to be considered well capitalized. This program is designed to ensure that these major banking institutions have sufficient capital to perform their critical role in our financial system on an ongoing basis and can support economic recovery, even under an economic environment that is more challenging than is currently anticipated."

"This additional capital does not imply a new capital standard and it is not expected to be maintained on an ongoing basis. Instead, it is available to provide a cushion against larger than expected future losses, should they occur due to a more severe economic environment, and to support lending to creditworthy borrowers"

"Because our economy functions better when financial institutions are well managed in the private sector, the strong presumption of the Capital Assistance Program is that banks should remain in private hands."