It didn't take long for investors to get over their euphoria of electing a new president to take a hard look at what a new Administration will soon face - a sea of red ink and a faltering economy. Money flowed out of stocks after yesterday's election day rally and today's poor economic data and moved back into bonds. Our benchmark FNMA 6.0% mortgage bond benefited with a gain of 41bp to close at $101.66. The bond has reversed its recent downward plunge to shoot 191bp higher over the past four sessions. Inter-bank lending continues to improve with the three month dollar LIBOR falling to 2.51% from 2.71% yesterday. However, the rate is still 151bp above the current 1.0% Fed funds rate for overnight bank loans compared to an average of 22bp above the Fed funds rate during the 5 years prior to the beginning of the global credit crisis. Today's economic news soured stock market sentiment with the latest Challenger Job-Cut Report indicating employers laid off 112,884 workers in October, the highest number in five years. Announced job cuts in October were 79% higher than the year ago period. The ADP Employment Report also indicated rising unemployment as private sector companies reported a cut of 157,000 jobs in October. The current consensus estimate for the Labor Department's official Jobs Report set for release this Friday is for a loss of 200,000 jobs with a rising unemployment rate of 6.3% from September's level of 6.1%. The ISM Services Index was reported at 44.4 for October vs. a consensus forecast of 47.0. According to the Commerce Dept., the services sector share of the economy has risen to about 80%. Today's reading below 50 indicates economic contraction in the largest segment of our economy. The U.S. Treasury announced its 4th quarter refunding needs and will auction $55 billion in mostly long term debt next week. There will be $25 billion in 3-year notes, $20 billion in 10-year Treasuries and $10 billion in re-opened 30-year bonds. The stock market retreated with the Dow losing 486 points to close at 9,139 while the broader S&P 500 Index gave back 52 points to end at 952. The NASDAQ Composite Index fell 98 points to finish at 1,681.