Our benchmark FNMA 5.5% bond was able to pick up 31bp for a close of $101.81 during a session marked by weak economic and corporate news that drove the stock market lower ahead of tomorrow's key Jobs Report. Bonds were also helped out by the expectation the Fed will begin their buying program to purchase Agency bonds. Sour labor-market news continued today with announcements of AT&T cutting 12,000 jobs and DuPont cutting 2,500 jobs. Initial Jobless Claims fell by 21,000 claims to 509,000 in the latest week, the lowest level in a month. However, the more significant four-week moving average increased by 6,250 to 518,250 claims, the highest level in 26 years. The Monster.com Employment Index, a measure of on-line job postings, fell 7 points to 143, its lowest level in four years. In other news, Factory Orders fell 5.1% in October, the largest drop in 8 years. During a Fed conference on housing finance, Chairman Ben Bernanke said home foreclosures still remain 'too high' and that 'more needs to be done.' To that end, Bernanke said Congress should ease the terms of the government's Hope for Homeowners Program and the FDIC's 'IndyMac Plan' to help prevent an estimated 2.25 million pending home foreclosures. Bernanke also suggested the government could buy large quantities of delinquent or risky mortgages and then refinance them into the Hope for Homeowners Program. Meanwhile, Treasury Secretary Hank Paulson is proposing a plan to lower 30-year fixed rate mortgages to 4.5% by buying massive quantities of mortgage-backed securities from Fannie Mae and Freddie Mac. The stock market showed modest losses for most of the day but selling accelerated during the final hour as traders exited positions ahead of tomorrow's Jobs Report. The Dow fell 215 points to close at 8,376 while the broader S&P 500 Index lost 25 points to end at 845. The NASDAQ Composite Index retreated with a 47 point loss to finish at 1,445.