FNMA 4.5% bond came UP another 36 bps...and the rates got a little better! The treasury auction was actually given an "A-" rating which showed that there was appetite for those types of investments. This was great for bonds and gave lift until profit taking deflated the pricing somewhat later in the session.

We are in the 5.5% range on the 30 year fixed product.

US dollar is gaining a little strength vs. other currency. Oil has relaxed because of this and is just under 70/barrel.

Dow lost 96 points...but is still at 9241.

Tomorrow afternoon we will get to hear a statement from the feds on the economy as the FOMC meeting will get out at about 12.15pm EST. The markets will likely react.

Many analysts feel that we are "out of the recession" but what does that mean? That we are no longer hemorrhaging jobs and exports. Simply: if we stagnate we will technically no longer be "receding". Most agree that a recovery will take some time and many are concerned with the recent federal action that may not encourage growth in the GDP.

Watch for sell-off in the bond market tomorrow...we will likely see rates pop up a little bit in the short term with "profit taking" along with the anticipation of the fed statement...but if the mood holds in the morning...we may actually see improvement in rates.

Have a great eve!

Chad