Daily Market Update 12/8/10

Rates continued moving higher Wednesday as the Fannie Mae 30-year fixed required net yield reached its highest level since June 3. Concern by investors over budget deficits, weak demand for Treasurys, and the prospect for stronger economic growth as a result of the proposed tax package weighed heavily on the mortgage-backed securities market. Results from today's 10-year Treasury auction will be released at 1:00 PM.