A "large west-coast money manager" reportedly dumped approximately $3 billion in Ginnie Mae securities last week, sources say, contributing to an awful week for the Ginnie bid but a glowing week for mortgages in general as the yield curve steepened (see story above).

"Full faith in credit" seemed to be meaningless last week, as $3 billion GNMA bonds were sold off, possibly because of a nice profit in the trade or because of a desire to lock in profits before quarter-end.

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