The decline in foreign investor holdings of agency MBS continued in October, contributing to an overall year-to-date decline through that time of $57 billion, according to a Credit Suisse strategist.

Mukul Chhabra, mortgage strategy, Credit Suisse, said. "We believe…sales (in September and October) were likely driven by a combination of a rate view, concerns about a government-induced auto-refi program, and profit taking.

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