December 30, 2019
The Sector Update publication is abbreviated today due to the New Year holiday. Individual sector reviews will return on January 6th. If there is anything we can do for you in the interim, please do not hesitate to reach out.
Food for Thought
We have written recently that mortgage spreads look comparatively wide. By our measurements, that still appears to be the case. Please consider the chart below.
Weekly Spread Commentary
- 2s to 10s slope steepened, 1 bp wider to 30 bps. At highs of the year.
- Agency Bullets were flat.
- Agency Callables were largely unchanged, 15-years tightened by 1 bp.
- MBS were mixed, 15-year was 1 bp wider and 30-year MBS were unchanged.
- CMOs were 1-2 bps tighter on the week.
- Corporates were unchanged, save the 2-year wider by 2 bps. At lows of the year.
- BQ Munis were 3-6 bps wider, reversing a 3-week trend of tightening.
- GM Munis were 3-5 bps wider.
- Taxable Munis were mixed, 5- and 10-year maturities were 2-4 bps wider and the 15-year was 2 bps tighter.
What We’re Reading
Market Today | Daily
Weekly Recap | Weekly, Friday
Brokered Deposit Rate Indications | Weekly, Monday
Investment Alternatives Matrix | Weekly, Tuesday
MBS Prepay Commentary (December) | Monthly, 5th business day
SBA Prepay Commentary (December) | Monthly, 10th business day
“Some debt investors are taking a second look at mortgage bonds after a summer slump pushed yields on the securities to their highest levels in years relative to U.S. Treasurys.”