After holding essentially un-changed in the previous week, mortgage spreads tightened, especially Ginnie Mae premiums. Sevens and 7.5s firmed 15 and 16 basis points, respectively, over the Wednesday-to-Wednesday period versus five basis points for Fannie Maes.
Overall, spreads moved in eight basis points for 6% coupons; 11 basis points for 6.5s; and 13 basis points for 8s. Fifteen-year MBS spreads tightened eight basis points on average. As noted in last week's MBS Roundup, mortgages tend to benefit following the employment report, quarterly refundings, and the calendar call-out.