After a flurry of Mega and Giant pools came into the market earlier in the year, issuance has dropped noticeably in the third quarter, mainly caused by diminishing MBS bank holdings.

Credit Suisse First Boston reported that August 30-year Mega pool issuance stayed low at $3 billion, $2 billion of which was composed of FN30 5.This is merely half of July's issuance numbers. Furthermore, according to CSFB, issuance so far in the third quarter has paled in comparison to the $89 billion posted in 1Q05 and $55 billion in 2Q05, which was mostly concentrated in the 5.0% coupon.

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