Stifel said that the probability of the Fed's interest rate hike is rising, and the US bond yield curve pricing shows a moderate flat pattern, which forms a “favorable environment” for the performance of mortgage-backed securities, and this environment will reduce the speed of early repayment. Strategist Kevin Calvin wrote in Wednesday's research report: “Although interest spreads have narrowed since the beginning of the year, compared to US bonds, mortgage-backed securities still have considerable yield and holding income advantages.” Interest spreads on all 30-year securities have narrowed due to lower premium risk, limited net supply, and a slowdown in early repayment rates.

Stifel said that the probability of the Fed's interest rate hike is rising, and the US bond yield curve pricing shows a moderate flat pattern, which forms a “favorable environment” for the performance of mortgage-backed securities, and this environment will reduce the speed of early repayment. Strategist Kevin Calvin wrote in Wednesday's research report: “Although interest spreads have narrowed since the beginning of the year, compared to US bonds, mortgage-backed securities still have considerable yield and holding income advantages.” Interest spreads on all 30-year securities have narrowed due to lower premium risk, limited net supply, and a slowdown in early repayment rates.