MBS
November 4th, 2009 1:42 pm | by John Jansen |Mortgage flows have been light in advance of the FOMC statement. On balance, MBS is about 2 ticks tighter to swaps. There has been two way flow from Hedge Funds as well as better buying from money managers. Originators as is there custom have been steady sellers.
One mortgage market participant offered the following commentary about swap market flows in advance of the FOMC:
We are keeping an eye on the front end of the swap curve as our rates desk has noticed steady flows ahead of FOMC and NFP friday, a majority of accts are expecting language in the Fed statement to be unchanged. On the servicer side, they do not expect convexity participants to re-hedge if we remain within this range in the 10yr (3.40%-3.60%)
