Mortgage Bond Spreads Touch Two-Month Low as Banks Add Debt
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Yields on Fannie Mae and Freddie Mac mortgage bonds that guide home-loan rates extended a tumble from a 15-month high at the start of December.
Fannie Mae’s current-coupon 30-year fixed-rate mortgage securities declined today to as low as 0.74 percentage point more than 10-year U.S. government debt, the lowest in two months, according to data compiled by Bloomberg. The spread ended trading at 5 p.m. in New York down less than 0.01 percentage point at about 0.77 percentage point. The gap, which finished last year at 0.84 percentage point, narrowed from 0.99 percentage point on Dec. 1.