Investors appeared very much to play the range this final week of June - and a tight range it is.  In the last half of June,  the 30-year current coupon spread to 10-year notes has ranged between 106 and 109 basis points.

At lower prices and supply-induced widening, a broad range of investors appeared including banks, REITs, overseas buyers, money managers, and hedge funds, while higher prices and spreads firming to the tighter end led to active profit taking, particularly from money managers. Flows were primarily concentrated in 3.0% and 3.5% coupons, where the Federal Reserve and Liquidity are located.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.