September 4th, 2008 3:58 pm | by John Jansen |

Mortgages are closing about 6 ticks tighter to Treasuries and about 3 basis points tighter to swaps.One dealer described the flows as “chunky”. The same dealer noted that the buyers today were from the genus “long term”. Some profit taking emerged late in the day but MBS held its gains.

The move tighter in MBS is especially impressive in light of the stock market meltdown. In the recent past that was a formula for spread widening. The price action today is indicative of broad based buying. It will be interesting to see if the spread improvement can be maintained if stocks should have a Friday meltdown tomorrow.

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  1. 2 Responses to “MBS”

  2. By y81 on Sep 4, 2008 | Reply

    You rarely comment on CMBS spreads which have tightened a lot during the past two weeks. Any thoughts/insight?

  3. By John Jansen on Sep 4, 2008 | Reply

    I do not follow them as closely but have several sources which I will gladly visit with on Friday.

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