Operation twist is going to be completed by the end of the year however the Fed is going to start buying 80 freaking billion dollars worth of MBSs per month in Jan. How is that going to affect AGNC going forward?
they will buy 40 + they will reinvest all the principal and interest coming off the existing portfolio.
Will probably total 60-80. Thats most of MBS production. It will compress the spread of all agency Mreits.