Positive economic data out of Europe as well as news that Greece had reached a deal with its creditors pushed the curve steeper and higher overnight. Additionally, rumors that US trade officials were working on restarting negotiations with China before the tariffs went into place buoyed risk sentiment sending equities higher.
Yesterday afternoon, the Trump administration released its plan to restructure some federal agencies, including Fannie and Freddie. The plan calls for the two agencies to be privatized and create an insurance fund that would only be tapped into after substantial losses had been realized in the private market. The news had little impact on the MBS market yesterday, as most of the ideas in the proposal had been discussed previously.
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