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 Whalen— Forward GuidanceCreated: 8/11/2026, 1:23:06 AM
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