Just in (today) -- Mortgage Backed Securities (MBS) are moving aggressively down in coupon after the FOMC (Federal Open Market Committee - the monetary policymaking body of the Federal Reserve) announced they will outlay an additional $750 billion for Agency (Fannie/Freddie) MBS and that they will purchase an additional $300 billion longer term treasury securities!!!

The main thrust of this announcement is: ˜to provide greater support to mortgage lending and housing markets, the Committee decided today to increase the size of the Federal Reserve's balance sheet further by purchasing up to an additional $750 billion of agency mortgage-backed securities, bringing its total purchases of these securities to up to $1.25 trillion this year, and to increase its purchases of agency debt this year by up to $100 billion to a total of up to $200 billion. Moreover, to help improve conditions in private credit markets, the Committee decided to purchase up to $300 billion of longer-term Treasury securities over the next six months.'