Ginnie Mae 2 mortgage-backed securities with 2% coupons were issued in April-May 2020 when 10-year Treasury yields were 50 basis points, were heavily traded then, but are now undesirable because mortgage rates have risen to 3.2% on 2-year mortgages, making the older 2% securities economically unattractive and illiquid.

factualpending

Speaker

Unidentified Speaker — The Fed’s Ticking Time Bomb Is About To Explode | Joseph Wa… [yKqqbjyVEP0]

Evidence Quote

now that the you know 10-year treasury rate is you know the two-year treasury is two is excuse me 3.2 percent no one wants a two percent coupon

Source

The Fed’s Ticking Time Bomb Is About To Explode | Joseph Wang & Chris WhalenForward Guidance
Created: 8/11/2026, 1:23:06 AM

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