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August Starts Strong Sans Fight-to-Quality Bid

Mortgages are off to a strong start in August. For the month through Aug. 7, the Lehman Brothers MBS Index outperformed Treasurys by 30 basis points. In fact, MBS is outperforming ABS (six basis points over), CMBS (negative 40 basis points) as well as corporates (negative three basis points).

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