Mortgage product was smashed during the last couple of weeks as the rally in Treasurys caused the worst week for the mortgage market since the bond market crisis in 1998. Spreads widened by more than 30 basis points, but seemed to have come back quite a bit by the end of the week, sources said.

In a single week, from January 27 to February 3, the 30-year interpolated current coupon MBS spread widened from 128 basis points to 159 basis points over the 10-year Treasury yield, according to Nomura Securities.

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