It has been a very "interesting and eventful week for mortgages," market participants said, as 15-year paper made an incredibly strong showing and Ginnie Mae paper made a significant comeback.

Dwarf 7.5% 15-year paper was simply a phenomenon last week, outperforming 30-year paper on the week by 10 ticks, while the 30-year current coupon was down four to five ticks, market sources noted. All of this was purportedly due to a strong roll in 7.5's, and a big squeeze in that coupon. This 15-year paper "decoupling" had some market players believing that valuations for this paper were crazy and/or out of control, though some observers thought that valuations were sensible.

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