Agency spreads tighten on Fed buyback; Freddie Mac passes on further May issues

By Lisa Kerner

Charlotte, N.C., May 21 - Agency spreads were "a good bit tighter" on Thursday, said a source, driven by the Federal Reserve's continued buyback of agencies.

The two-year sector was tighter "by a couple of basis points" and the seven-year and out sectors were wider by 1 bps, the source said.

Freddie Mac's announcement that it will not issue another Reference Notes security in May is not "super duper" significant, according to the source.

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