The Bond Market Association (BMA) stated today in its latest research quarterly that new bond issuance continued to climb through the first quarter of 2003, increasing 35% from the same period last year. The federal government and issuers of MBS led the way.
The federal government pushed issuance by 60% while MBS issuers drove issuance by 48%. The government issued an increased amount of Treasury securities to finance the expanding federal budget deficit. Meanwhile, borrowers boosted MBS through refinancing and the buying new homes.