Agency Update

April 8, 2019

Agency bullets basically moved in line with government debt, while callables tightened in on the week. Currently 3- and 5-year agency bullet spreads are at 6 and 8 basis points, respectively. Callables tightened on the week by 3-10bps, the most occurring in longer maturities.

Recent Issues

FHLMC 5-NC1yr 1X @ 2.60%

FHLB    7-NC1yr Cont. @ 3.00%

FFCB    10-NC1yr Cont. @ 3.32%

The below table reflects last week’s total issuance and call activity across the primary GSE issuers.  Last week’s call activity picked up to $2.6 billion.  The major agency issuers have called $22.4 billion in securities since the beginning of March.  Total issuance last week was $7.3 billion.

Kevin A. Smith, CFA

SVP, Director Investment Product Strategies

Vining Sparks IBG, LP

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