Why anyone is selling during the end-of-quarter run-up is beyond reason. Talking heads all agree that under the prevailing circumstances, it is very plausible short rates will remain near zero for the foreseeable future. Could it be fear of the rescheduling for the annual meeting? Perhaps lingering fears of the next SPO? Who knows?
Yield Curve: Short end remains near zero while the 30-year 4.27%. That's like hitting 3 cherries on a slot machine.
Spreads will be wonderful all the way until the last ballots are counted in next year's election. Team Obama will see to that. Were the Fed to start raising rates now like the Euro guys are starting to signal the USA will go into another recession..and then QE3 sails followed by QE4 etc. AGNC/IVR/NLY are like a salmon run that just keeps on giving. I'm out of AGNC at XMAS of next year think I.
I don't think interest rates have anything to do with the national election. I see the poor economy continuing for years to come with the hidden reason being the retirement of the Baby Boomers. Their productivity and earnings power is being sucked out of the economy ... and will for 20 years. Many other reasons also such as the high debt and high trade deficit sucking money out of the economy and sending it abroad.