Swaps and MBS

March 31st, 2009 4:02 pm | by John Jansen |

Swaps spreads are wider across the curve.

The 2 year spread is wider by 2 1/2 basis points at 57 1/4. Five year spreads are wider by 3 1/2 basis points at 54 3/4. Ten year spreads are wider by 2 1/4 basis points at 20 1/4 . Thirty year spreads are wider by 3 1/4 basis points at NEGATIVE 29 1/2.

There was paying late in the day which pressured spreads wider.

Mortgages are about 1 1/2 ticks tighter to swaps.

The mortgage market saw huge selling by originators which was matched by Federal Reserve and money manager buying. There was some buying from Asia and a variety of accounts took profits on up in coupon trades.

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