I think AGNC will try their best to generate the taxable income that justifies the existing dividend of $1.25 per quarter. Stable performance leads to a greater stock price, which enables equity capital to be raised more easily. Growing the company, which leads to a greater management fee, is management's objective. Since a stable dividend is consistent with their primary objective, I believe RMBS and TBAs will be bought and sold to maintain taxable income and the dividend.
AGNC may already have dumped some of the TBAs during the run up in price during April. That would easily have provided the taxable income they need. If they haven't traded any of the TBAs yet, they will probably have a second opportunity to do so before the end of June.
I have a 1,200 AGNC position. I think they have two options in regard to the next dividend. Either they can do another SPO (as they use to do) or they have to reduce the dividend. I expect a reduction to $ 4,00 ($ 1,00 per Q)
since conjecture is the word of the day, I say they will have another SPO and also raise the
divi to 1.50 per Q. it makes for a more robust outlook for all and it makes sense given
the earnings will support it.