Monday will see the release of prepayment reports from Freddie Mac, Fannie Mae and Ginnie Mae. While GNMA and FNMA speeds are expected to slow, FHLMC is expected to exhibit substantially faster speeds with the one-time transition period involving 1.5 months worth of paydowns driving speeds (ASR 06/25/2001).

As mentioned, Fannie and Ginnie speeds are expected to slow. UBS Warburg said that most coupons and vintages are going to slow 10%-20%, followed by declines of mostly 10% in July.

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