Franklin U.S. Government Securities Fund Q1 2026 Commentary
Franklin Templeton·2026-06-12·via All Articles on Seeking Alpha
Summary
Security selection in GNMA II [2.0%, 2.5%], [3.5%, 4.0%] coupons helped returns. Relative allocation to GNMA II [2.0%, 2.5%] and [4.5%, 5.0%] coupons also lifted returns.
Security selection in GNMA II [4.5%, 5.0%] coupons curbed results.
We view Agency MBS as neutral with reason for optimism. In the near term, we remain cautiously constructive, supported by the GSE backstop through early summer.
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Key Takeaways
Markets: The war in the Middle East, which began in late February when the United States and Israel struck Iran, dominated much of the news flow and financial market sentiment over the remainder of
