So far this morning MBS is relatively flat in light activity as market participants attempt to determine their desired position within the stack. MBS is currently nearing/already at expensive price levels and investors may be searching for a means to make room for more buying (sell off needed). The stock market has reacted quite favorably to the Obama Adminstrations Toxic Asset plan SO FAR...the stock lever has been a nonfactor for Treasuries and MBS in early trading activity. Mortgage rates are mixed this AM depending on your lender...some lenders better some flat and some marginally worse.

APRIL FN30_____________________________

FN 4.0 -------->>>> +0-00 to 100-11 from 100-11

FN 4.5 -------->>>> +0-00 to 102-01  from 102-01

FN 5.0 -------->>>> +0-01 to 103-00 from 102-31

FN 5.5 -------->>>> +0-01 to 103-18 from 103-17

FN 6.0 -------->>>> +0-01 to 104-03 from 104-02

APRIL GN30_____________________________

GN 4.0 -------->>>> +0-00 to 100-17  from 100-17

GN 4.5 -------->>>> +0-02 to 102-07 from 102-05

GN 5.0 -------->>>> +0-03 to 103-17 from 103-14

GN 5.5 -------->>>> +0-00 to 103-31 from 103-31

GN 6.0 -------->>>> +0-03 to 104-10 from 104-07