The 10 yr is off a tad, but the long term fixed takes a hit again. Rates still rising, especially at the long end. AGNC is in the long end fixed rate. ARM's seem better now but for how long. With all the volatility, how do you avoid getting scalped on hedging???
This might be the start of the great bond bubble pop that everyone has been predicting for a few years now. Now all those people who thought they were safe investing in bonds are going to find out why bonds can be just as risky as stocks during periods of rising interest rates. Rates cannot go any lower. We are at the bottom. The only way to go is up or not at all.
It was an up day for TTT.
About AGNC's hedges. You have to figure that anyone you would buy a hedge from is no fool. They can see the writing on the wall as well and I suspect that these hedges are becoming very expensive now days. So much so that AGNC cannot afford to buy as many of them as they once did.