Today’s Highlight
US Credit Markets Are Improving Even As The End Of The Fed’s Asset Purchase Programmes Nears
The US credit markets are improving even as the Federal Reserve’s scheduled end of asset purchase programmes approaches. Yields on Fannie Mae and Freddie Mac mortgage securities that guide US home-loan rates are trading at the lowest relative to Treasuries on record. The difference between yields on Fannie Mae’s current-coupon 30-year fixedrate mortgage bonds and 10-year US Treasuries narrowed to about 0.63 percentage point on 8 March, the smallest spread since at least 1984, according to data compiled by Bloomberg. The Fed completed US$1.22trn of net purchases of agency mortgage securities through 3 March or 98% of the target.
Tracking The World Economy ... - 09/03/2010
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