Fed Buying Helps Lift Fannie Mae Mortgage Bond to Record High

Bloomberg, Jan. 25, 2021–Christopher Maloney
January 25, 2021, 2:18 PM EST
The Fannie Mae 30-year 2.5% mortgage bond TBA, or forward settling mortgage-backed securities, hit a fresh record high. Lower supply, as production instead shifts down the coupon stack, and Federal Reserve buying have helped boost the coupon’s price, which touched 105-15+ Monday morning in New York. In terms of Treasury option-adjusted spread, the coupon offers negative 34 basis points as of Friday’s close, down from zero at year-end and positive 15 basis points at the end of November.
https://www.bloomberg.com/news/articles/2021-01-25/fed-buying-helps-lift-fannie-mae-mortgage-bond-to-record-high?srnd=premium