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FNMA 5 correction looming?

FNMA 5s outperformed substantially recently on news of the creation of two $5 billion Megas.

Lehman Brothers analysts said the coupon tightened by nearly 10 basis points LOAS, outperformed swaps by 14/32nds and the rest of the coupon stack by 7-8/32nds. Analysts note the market response is due to...

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