The June prepayment report, released last Tuesday, showed prepayments on FNMA 30-year 5.5s increased to an "eye-popping" 42 CPR, which is a 159% rise from May, said analysts from Credit Suisse First Boston.

Recently originated 30-year conventional 5.5s set the prepayment pace for the June report. Speeds increased sharply in 2002 and 2003 vintages, said Bear Stearns in a report released Tuesday morning.

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