Agency Update

June 5, 2017

Agency yields drifted lower this past week, with most of the movement coming on Friday with the release of the May employment report. On the week, two-year Agency yields fell 3 bps to 1.35%, 5-year Agency yields decreased 8 bps to 1.81%, and yields on 10-year Agencies declined by 10 bps to 2.52%.

Yield spreads for Agency bullets compared to Treasuries were unchanged, while Agency callables widened 1 to 8 bps, depending on the structure and call tenor.  The larger movements occurred on structures with 10- to 15-year finals.

Last week investors were focused on the following:



Michael S. Erhardt, CPA

Senior Vice President

Investment Strategist

Vining Sparks, IBG

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