Last week's activity was all about buying. Substantial widening followed the Federal Open Market Committee's meeting, and spreads moved further on the April employment report, but investors just had to step in, as the sector was too attractive to ignore.

Support came from banks, insurance companies, dealers, and hedge funds covering shorts. Interest focus was primarily in 30-year 5.5s and 6s due to attractive carry. At the same time, originator supply was relatively light at around $1 billion per day on average.

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