Last week started off slowly as the market waited for Tuesday's FOMC meeting, but once the statement was out, activity picked up and held steady through the rest of the week. Solid buying was observed from money managers, hedge funds, servicers, insurance companies and banks. Buying was across all coupons and was influenced by investor preference for either carry or yield.
Originator selling, meanwhile, picked up from its rather lethargic levels of late. Strong selling totaling in the $2 billion area was noted on mid-week, while Thursday's level totaled roughly $1 billion. Selling is seen increasing from recent low levels on an uptick in mortgage application activity, due to declines in mortgage rates.