Tag Archive for Fed

Treasury yields capped by public sector purchases- Sober Look

This is a syndicated repost courtesy of Sober Look. To view original, click here. Reposted with permission. Treasury yields have risen at the start of the new year but have since stalled. 1.9% yield seems to be the ceiling on the 10-year note for now. 10y treasury yield (Bloomberg) Public sector entities continue to make…

Agency MBS spreads collapse, durations shorten, swap spreads follow, and fundamental valuations go out the window

Fannie Mae and other agency MBS spread to treasuries declined sharply in the last couple of days – to the lowest levels in years in fact – all in reaction to the news from the Fed (see post). With spreads this low, the Fed will be buying paper at …