Agency mortgage bonds still in short supply as the spread between them and 10-year Treasurys...

|By:, SA News Editor

Agency mortgage bonds still in short supply as the spread between them and 10-year Treasurys narrows to 66 basis points, the lowest in more than 17 years. It's narrowed nine basis points since the Christmas Eve announcement of an increased capital backstop for Fannie Mae (FNM -2.6%) and Freddie Mac (FRE -2.8%).