FNMA 4.5% picked up another 19 bps today after being UP as much as 28 BPS on the day. We are interested to see where this bond will go as we head into the last trading sessions for the week with the holiday.

30 year fixed money is still in the 5% range and may dip below 5% in the morning.

Dow lost 185 points...as investors seek safe haven. This is despite good news below which is usually "Dow Friendly".

Manufacturing index came in at the highest levels since June of 2007! This is in part due to the fact that many companies have let their inventory deplete in efforts to run "lean" as things have been slower. The "spike" may be from them ordering more supply to fill their stockrooms. This is a dangerous thing...as the
"pent up" demand can cause a pretty rapid run-up in the price of goods.

ALSO: Existing home sales were UP for the 6th month in a row and came in much better than expected. It will be interesting to see the inventories report to see if we are soaking up some of the "supply" in the marketplace. Six months in a row of growth in this area is the longest streak on record! Remember though: much of this is driven artificially by the low interest rates and incentives so we will have to see how the next few months are affected as the tax credit goes away and the feds buy fewer mortgage backed securities.

Have a great eve!

Chad