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.
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