Spreads in the intermediate to longer triple-A sectors continued to gap out as a significant amount of CMBS has been coming to market this month. For instance, at the start of last week, two more fixed rate deals priced - adding another $5.5 billion to the system - on top of one large floater deal, JPMC FL2, that also came to market last week.

Investor appetite is growing weary as the intermediate triple-A sector has gapped out considerably and the 10-year super senior class is now within a few basis points of the wides of the year. Most of the spreads widening is supply-related as the other remaining sectors, such as agency CMBS, were unchanged on spread in the absence of issuance and or focus.

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