Don't look now: Fannie, Freddie, Ginnie bonds are on a roll
Second round of tapering being absorbed just fine
While the Federal Reserve continues to reduce holdings of mortgage-backed securities and Treasurys, the mortgage bond market is reacting well. Very well.
Too bad the stock market isn't feeling any love. And the yield on Treasury slid to a 2-month low on the tapering announcement.
But the good news is, Fannie Mae, Freddie Mac and Ginnie Mae (agency) mortgage bonds this week are primarily on the way up. However, no one is calling it a rally, so it's hard to determine if the performance will continue.
This update is from data analytics firm Interactive Data from the time the Fed made its announcement.
And here it is two days ago.
Compared to last week, January 22.