Rate Watch 12-31-2008 New Years Eve

Cautiously Floating:
Oil lower to $37.92/barrel down $1.11. Stocks open mixed. Initial jobless claims drop 94K to 492K. Mortgage Backed Securities higher after the announcement from the Fed after the close yesterday that the $500B program to purchase Fannie, Freddie and Ginnie Mae Mortgage Bonds will begin in early January. Markets set for and early close at 2:00pm ET today and closed tomorrow. Full session Friday.