In the past three weeks, investors have withdrawn from US mortgage bond funds, and the scale of fund outflows has become one of the seven most severe since the beginning of 2021. The US mortgage-backed securities index recorded its second worst monthly performance on record in September. US treasury bond bond yields rose to decades' highs, triggering a sell-off in mortgage bonds. Strategist Erica Adelberg stated that the Federal Reserve's tightening of monetary policy and flattening of the yield curve have weakened banks' demand for MBS. As mortgage interest rates rise to their highest level since 2023, it is expected that the supply of MBS will decrease by the end of the year. (Source: Jin Shi)
