MBS UPDATE: Fed Buys $22.277bn

The stack has improved from its intraday lows...

FN30_________________________                GN30______________________

FN 4.5 -------->>>> +0-03 to  100-22                   GN 4.5 -------->>>> +0-09 to  101-00

FN 5.0 -------->>>> +0-03  to  101-23                  GN 5.0 -------->>>> +0-03 to  101-31

FN 5.5 -------->>>> +0-02  to  102-09                  GN 5.5 -------->>>> +0-02 to  102-17

FN 6.0 -------->>>> +0-01  to  103-00                  GN 6.0 -------->>>> +0-01  to  102-31

The NY Fed has released its MBS transaction report.

Press Release:  http://www.newyorkfed.org/markets/mbs/index.html

In the last 5 days the Fed completed $22.277bn  MBS transactions. That averages out to 4.455bn purchases per day.

They are still buying fuller coupons (higher yielding), however that up in coupon bid was essentially offset by spreading our their "down in coupon" purchases across both GSEs and GNs. Dual mandate achieved...

In total the Fed has spent $91.74bn of their allocated $500bn. 5 months of buying to go....