Our benchmark FNMA 6.0% mortgage bond ran into a tough layer of overhead resistance at $101.87 and then pulled back to end flat with a close at $101.72. Risk in the credit markets is decreasing as global central bank interventions in the credit markets are giving banks the confidence to stop stashing their cash and increase their inter-bank loaning activities. The Fed was active today in battling the credit crisis by announcing a new program to buy assets from distressed money market mutual funds that are undergoing large redemptions. The Fed is setting up five fund facilities to be run by JPMorgan Chase to buy up to $540 billion in short-term certificates of deposit, bank notes and commercial paper from money market funds. Today's data shows credit markets are continuing to ease as this inter-bank confidence is restored. The overnight U.S. dollar LIBOR rate fell sharply below the Fed Funds rate to 1.28% from yesterday's mark of 1.51%. Usually, the overnight LIBOR closely approximates the Fed Funds rate, currently at 1.50%. Meanwhile, the 3-month LIBOR continues to trend lower for the seventh consecutive day with a rate of 3.83% vs. yesterday's level of 4.06%. However, the 3-month LIBOR is still 101bp above the 2.82% rate seen before the credit crisis began in mid-September. The LIBOR/OIS spread continues to fall and has dropped 23bp to 2.70% from 2.93% on Monday. The 'TED spread' has dropped to 2.60% from 3.25% on Monday. The TED spread measures the difference between the 3-month LIBOR and the 3-month Treasury bill, and is a key measure of risk. Disappointing 3rd Qtr. earnings and guidance from DuPont, Texas Instruments, and Sun Microsystems gave traders an excuse to take profits from yesterday's rally while investors became more guarded about future corporate earnings prospects. The Dow was pared by 231 points to close at 9,033 while the broader S&P 500 Index was trimmed by 30 points to end at 955. The tech-laden NASDAQ Composite Index shed 73 points to finish at 1,696.