The "disinversion" and steepening of the yield curve has the MBS market cheering, as the 15-year sector garnered more attention than 30-year bonds.

"This normalization of the yield curve helps tremendously, because as the collateralized mortgage obligation (CMO) bid comes back, the roll market develops, and it definitely helps," said Kathleen Foody-Malus, an MBS investor at Federated Investors.

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