Our benchmark FNMA 6.0% mortgage bond finished 85bp higher to close at $102.16 after reaching an intraday high of $102.78 following an announcement from the Fed that it will 'initiate a program to purchase the direct obligations of housing-related government-sponsored enterprises (GSEs)--Fannie Mae, Freddie Mac, and the Federal Home Loan Banks--and mortgage-backed securities (MBS) backed by Fannie Mae, Freddie Mac, and Ginnie Mae.' Traders took some of their profits off the table near the end of the session on the day's exaggerated move. In other news, the Treasury Department in conjunction with the Fed announced the creation of a new term asset-backed securities lending facility collateralized by student loans, credit cards, and auto loans. The Treasury will fund the new lending facility with $25 to $100 billion from the TARP program. Preliminary 3rd Qtr. GDP matched the consensus estimate of -0.5%, up from the Advanced GDP estimate of -0.3%. The downward revision was due to a fall in consumer spending, the worst in 28 years. The inflation measuring Chain Deflator also matched the consensus estimate of 4.2% while the Core PCE price index increased by 2.6% vs. the prior estimate of 2.9%. The S&P/Case-Shiller Home Price Index for September showed home prices in the 20 largest U.S. cities falling by more than 17% year-over-year. Consumer Confidence in November rose to a higher than forecast 44.9 vs. expectations of 39.5 and was higher than October's level of 38.0. A Treasury auction of $26 billion in 5-year notes went reasonably well with foreign participation of 37.2%. The stock market finished 'mixed' after a two-day monster rally with the Dow gaining 36 points to close at 8,479. The broader S&P 500 Index gained 5 points to end at 857 while the NASDAQ Composite Index gave up 7 points to finish at 1,464.