Thursday, October 17, 2013

FLASH Update: MBS Responding Well to Debt Settlement

Today we are seeing MBS continuing their tightening, which began yesterday after an early rumor spread of a settlement in Congress on the debt deal.  Current coupon mortgages have tightened about 4 ticks (0.125%) against their treasury hedges at midday, after tightening by a similar amount yesterday.  The treasury curve is also rallying and flattening as well.  Curve flattening dynamics are typically good for mortgages and other fixed income spread products.  We expect the current environment to continue to be constructive for agency MBS securities. 

Tradex Global Advisory Services, LLC
investorrelations@thetradexgroup.com 
203-863-1500
@Tradex_Global

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