How are the mREITs reacting to the flat yield curve? Pretty well

|About: AGNC Investment Corp. (AGNC)|By:, SA News Editor

Treasury yields continue to plunge in the wake of the Fed's capitulation to the doves and this morning's very soft economic numbers out of Germany.

The 10-year Treasury yield today is down 10 basis points to more than a two-year low of 2.43%. At the start of March, the yield was 2.75%.

Banks have been getting mercilessly punished, with the SPDR Regional Banking ETF off another 5% today.

Mortgage REITs also borrow short and lend long, but they're holding their own in the face of the flat yield curve. Annaly Capital (NLY flat) is a pretty decent proxy, and it continues to hang not only near the year's high, but also at a price north of book value per share of $9.39 (as of Dec. 31). The other sector giant, AGNC Investment (AGNC +0.4%) is showing similar price action.

Other players: Chimera (NYSE:CIM), Two Harbors (NYSE:TWO), Armour (NYSE:ARR), New York Mortgage (NASDAQ:NYMT), Western Asset (NYSE:AMC), MFA Financial (NYSE:MFA), Invesco (NYSE:IVR), Dynex (NYSE:DX)

ETFs: MORL, REM, MORT

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