MBS OPEN: Flat... Limited Data... Lengthy Bernanke Speech.

Bernanke's speech just concluded, although the full text is posted below.  Unscripted  Q and A is now beginning.  We'll let you know if anything unexpected surfaces, but one of the better snippets from what was largely a recap of what's happened and what's been done about it was this:

  "In determining whether to proceed with such purchases, the Committee will focus on their potential to improve conditions in private credit markets, such as mortgage markets."

Opening Price Levels:

4.0's down 4 ticks to 100-20  (ginnies down 4 to 100-30)

4.5's down a tick to 102-05    (ginnies up 2 to 103-00)

5.0's up a tick to 103-02        (ginnies up 3 to 103-27)

In news, November's trade deficit is down 28.7% from the downwardly revised $56.7 bln in October, the biggest monthly percentage drop seen in 13 years. The $16.2 bln decline is a record dollar decrease.

Still to come are a few treasury auctions including a 1 yr issue at 1pm est.  An hour later, the treasury budget report follows.