Treasuries rallied again today on poor economic data. The two-year finished up 3/64, and the ten-year was higher by 9/32. The benchmark curve flattened by 1 basis point, and currently sits at +224 bps. A basis point represents .01%.Fed Purchases
The Fed purchased $27.2 billion in agency MBS during the past week. The 30-year fixed mortgage rate sits at 4.76% and has held under 5% for 2 ½ months now, which has brought prepay activity higher. An interesting story on the current state of the refi market
The Fed bought $2.975 billion in Treasuries today with maturities ranging from 5/15/10 to 2/28/11. The total Treasury purchases currently stand at $104.7 billion.
Have a great evening.
Cliff J. Reynolds Jr., Junior Analyst
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