After a lackluster start to April on the limited economic news, activity finally picked up last week - primarily after the release of the Federal Open Market Committee minutes from the March 22 meeting. Investor reaction was positive after reading the committee's comments in regards to inflation and the market rallied. In mortgages, it was primarily fast money that was the most active; however, real money was noted, as were Asian buyers, finally.
Also last Monday was 48-hour notification for 30-year conventionals. Rolls on FNMA 5s and 6s were special. JPMorgan Securities analysts report that they expect the FNMA 5 roll to collapse next month as production in April is over $9 billion and they anticipate another $15 billion in May.