Our benchmark FNMA 6.0% mortgage bond traded in a 56bp range to finish 6bp higher with a close at $100.47. There was a tsunami of financial and economic news for the markets to consider but investor sentiment and structural problems like deleveraging and forced selling by large hedge funds are driving the financial markets and creating large swings in the indexes. Merrill Lynch reported a larger than expected loss of $5.2 billion. Citigroup reported a quarterly loss of $2.8 billion in earnings. The Bank of New York Mellon Corp. reported their third quarter profits plunged by 53% with earnings of $303 million or $0.26/share. At least they booked a profit. The Swiss government is taking a 9% equity stake in banking giant UBS for $5.25 billion plus they are taking $60 billion in troubled residential and commercial mortgage related assets off of the bank's balance sheet. Inflation moderated in Sept. with the headline CPI reported flat at 0.0% vs. a consensus estimate of 0.2% with the Core CPI coming in less than expected at 0.1% vs. a forecast of 0.2%. Over the past year, the CPI has increased by 4.9% while the Core CPI has risen by 2.5%. The Philadelphia Fed Manufacturing Index fell off of a cliff at -37.5 confirming a swift slowdown in manufacturing activity in the Mid-Atlantic Region during October, its worst level since Oct. 1990. Industrial Production plunged by -2.8% in September, the most since late 1974. Net Foreign Purchases, a measure of foreign demand for our debt and equities, rose to $14 billion in August from a revised $8.6 billion. LIBOR inter-bank lending rates are continuing to ease. Three month U.S. dollar LIBOR loans fell slightly to 4.50% from yesterday's 4.55%. The Dow Industrials put in another day of stunning volatility by trading within an 816 point range before ending 401 points higher to close at 8,979. The broader S&P 500 Index rebounded 38 points to finish at 946 while the NASDAQ Composite Index gained 89 points to end at 1,717.