by Calculated Risk on 3/06/2008 05:24:00 PM

From Bloomberg: Agency Mortgage-Bond Spreads Rise; Markets `Utterly Unhinged'

Yields on agency mortgage-backed securities rose to a new 22-year high relative to U.S. Treasuries as banks stepped up margin calls and concerns grew that the Federal Reserve may be unable to curb the credit slump.

The difference in yields, or spread, on the Bloomberg index for Fannie Mae's current-coupon, 30-year fixed-rate mortgage bonds and 10-year government notes widened about 21 basis points, to 237 basis points, the highest since 1986 and 103 basis points higher than on Jan. 15. ...

The markets have become ``utterly unhinged,'' William O'Donnell, a UBS AG government bond strategist ...

Doesn't this feel like last February and March when the subprime market imploded? Except the problems in 2008 are more widespread.