Sunday, May 23, 2010

Fannie Mae/Treasury Spread Stabilizes at Higher Level

As of May 21, 2010: Fannie Mae 30 Day Commitment/10 Yr Treasury Spread: 1.18777

Notes: The spread is still historically very low, however, in the wake of the discontinuance to the Federal Reserves MBS Purchase Program on March 31, 2010, the spread has been rising persistently, from a low of 0.85006 on March 24, 2010 (one week before the official ending of the program) to the current spread of 1.18777, on May 21, 2010.

I expect this spread to continue significantly higher throughout the year.

Spread History: 12/03/2007 to 05/21/2010
Spread Average: 1.655390178
2 Std Dev: 0.944344144


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