Mortgage Sector Is on Its Longest Winning Streak Since the End of 2017
- Third consecutive month of excess returns versus Treasuries
- Three-month cumulative return best since September 2016
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The outperformance of mortgage-backed securities versus U.S. Treasuries has extended for a third straight month into November, buoyed in part by a decline in volatility. It’s now the longest run of consecutive monthly outperformance since the September through December period of 2017.
The Bloomberg Barclays U.S. MBS index excess return versus Treasuries closed the month of November at 19 basis points, bringing the year-to-date total to 20. Combined with the positive excess returns seen in September and October, the 52 basis point tally is the best over a three-month period since September of 2016.