Mortgages saw strong buying from insurance companies, money managers, hedge funds and banks last week as the Treasury market sold off. In addition, overseas accounts were active in Ginnies Maes. Preference was for up in coupon paper; however, lower coupons were bought as well.
Throughout last week, spreads were unchanged in 30-year Fannie Maes with the exception of 6s, which were one basis point tighter. Meanwhile, 15s were one basis point tighter, and also benefited from concerns of an uptick in volatility and the presidential election.