Mortgage-buying flows continued late into last week, taking a turn for the better following Thursday's $6 billion 10-year Treasury auction announcement. Thirty-year current coupons have been particularly well-bid and boosted basis gains, sources say, while 15s continue to see good buying interest as well and posting similar gains.

Spreads, which had been three basis points cheaper, were closing the week two to three basis points tighter due to the strong buying interest. Conventionals had the slight advantage over Ginnies, but lower coupons, up through 7s, were all tighter last week.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.