Free Trial

/FED: ### Traders say that a quick jump to...>

US MBS
US MBS: /FED: ### Traders say that a quick jump to 2.60% US Treasury 10-year
note yield would spur convexity hedging needs for MBS; while that's a ways from
the current 2.338% currently, some thought a more hawkish Fed Chair would push
the 10Y yield to 2.40% quickly, so it's not necessarily that far away. The
hedging can be done by selling in US Treasuries, shorting in US Treasuries or
paying in US swaps. 
-
- FED: MONTHLY CAPS ON SOMA SECURITIES REDUCTIONS 
--------------US TREASURIES.../AGENCY MBS/MONTH CAP 
- Oct-Dec 2017.. $6 billion./$4 billion 
- Jan-Mar 2018.. $12 billion/$8 billion 
- Apr-Jun 2018...$18 billion../$12 billion 
- Jul-Sep 2018...$24 billion../$16 billion 
- From Oct 2018** $30 billion $20 billion

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.