Rate Watch 1-27-2009

Cautiously Floating:
Mortgage Bonds are trading near flat levels, with prices remaining in a tight range. Stocks are trading higher so far this morning even after American Express and Texas Instruments (TI) reported lower than expected earnings and TI announced they are laying off 3400 people.Last night the Senate confirmed Timothy Geithner as Treasury Secretary by a vote of 60-34, and also vowed to act quickly to protect the US economy from the worst financial crisis since the Great Depression.The Fed begins its 2-day meeting this morning with the big interest rate decision and policy statement coming tomorrow.