Both upper and lower coupons had their days in the sun this week. Over Monday and Tuesday it was lower coupons that outperformed; over Wednesday and Thursday it was up in coupon that led, and on Friday into mid-day the entire stack was doing well.

After a supply deluge that totaled around $8 billion over Thursday and Friday as September closed out, money managers stepped up to the plate at the start of the week to take advantage of the supply-induced widening. They were also selling higher coupons and moving down in coupon on nervousness ahead of Thursday's September prepayment reports.

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