ALERT ALERT ALERT

"Rate sheet influential" MBS prices and benchmark Treasury yields have extended losses following the release of the Fed's Beige Book.

REPRICES FOR THE WORSE ARE MORE LIKELY

 From the Beige Book

14:00 13Jan10 RTRS-

• U.S. ECONOMIC ACTIVITY AT LOW LEVEL AS 2010 BEGAN BUT IMPROVING MODESTLY
• FED SAYS ECONOMIC IMPROVEMENT BROADENING, 10 OF 12 FED DISTRICTS REPORTED INCREASED ACTIVITY
• JOB MARKETS STILL WEAK, WAGE RISES MODERATE AND PRICE PRESSURES STILL SUBDUED
• CONSUMER SPENDING IN 2009 HOLIDAY SEASON SLIGHTLY STRONGER THAN 2008 BUT BELOW 2007 LEVELS
• CONSUMERS GENERALLY 'CAUTIOUS, PRICE SENSITIVE AND FOCUSED ON NECESSITIES'
• HOME SALES UP IN LATE 2009, ESPECIALLY FOR LOWER-PRICED HOMES, SALES PRICES UNCHANGED
• NONRESIDENTIAL REAL ESTATE MARKETS STILL SOFT, WEAKENING MORE IN SEVERAL DISTRICTS
• LOAN DEMAND DECLINING, CREDIT QUALITY DETERIORATING, LOAN DELINQUENCIES UP IN MANY DISTRICTS