Mortgage spreads moved wider over the past week as Treasurys held lower and volatility increased. Fannie Mae 30-year 6s weakened six basis points and 6.5s through 7.5s moved out about 13 basis points. 15s showed similar performance with 5.5s wider by seven basis points, and 6s through 7s out around 16 basis points.
Overall activity last week was rather modest versus recent sessions due to the increased convexity, prepayment, and supply risks. Originators were light at about $1 billion and less on a daily basis. Hedge funds remained the most active buyers, but traders note that their enthusiasm for the sector has been lower at the higher volatility.