Mortgage spreads and rates have fluctuated somewhat in the wake of European and Greek financial concerns that have sent some investors into safe havens such as the benchmark 10-year Treasury, a trend that had driven the latter's yield down to 3.56% at midday.
While MBS spreads were seen widening in departure from benchmark Treasury trends Tuesday, they were seen stabilizing Wednesday morning.
While Treasury yields have historically been a benchmark for interest rate direction their behavior can differ from the mortgage bonds more closely tied to rates.
