MBS mostly lagged in both rallies and sell-offs this week. Having the 10-year note yield in the 2.0% area raised concerns among both real investors and fast money accounts about increased originator supply and convexity-related selling. Higher prices on bouts of risk aversion weren't palatable either.

One significant influence to this week's performance was dollar roll weakness in 30-year FN 3.0 and 3.5s into Class A pool allocations on Friday. The Feb/Mar 3.0 roll declined to 067/07 by early afternoon from 093/09+ as of last Friday, and the 3.5 roll to 046/052 from 076/077. Many rolled early, including the Federal Reserve, which was a factor as investors apparently sought to avoid "a debacle" like last month, when rolls heated up.

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