Australia to Cease Mortgage-Bond Buys After Market Revival
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Australia will stop buying mortgage bonds as a revival in the market means the government’s support is no longer needed, according to Treasurer Wayne Swan.
The cost of issuing residential mortgage-backed securities has recovered since the credit freeze in 2008 that prompted the creation of the government’s RMBS program, Swan said in a speech today at the Bloomberg Australia Economic Summit in Sydney. Although it doesn’t plan new purchases, the government won’t sell the securities it owns in the near future, he said.