Unexpectedly strong prepayment reports issued last week by Fannie Mae and Ginnie Mae knocked the wind out of the mortgage-backed market, particularly the premium coupon sector, and Ginnie Mae bonds had the toughest time of all.

"We were hit hard we weren't expecting those kinds of prints," said an MBS pass-through trader who saw Ginnie 8s and 8.5s trail by three and six basis points, respectively.

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.