Pursuits
Mortgage-Bond Yields Approach 14-Month High After Jobs Report
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Yields on Fannie Mae and Freddie Mac mortgage bonds that guide U.S. home-loan rates approached a 14-month high as May employment data failed to allay concern that the Federal Reserve will pare back its unprecedented stimulus.
Fannie Mae’s current-coupon 30-year securities rose 0.06 percentage point to 2.99 percent as of 3 p.m. in New York, according to data compiled by Bloomberg. Yields reached 3 percent on June 4, the highest level since April 2012, climbing from a record-low 1.68 percent in September when the Fed said it would start buying $40 billion of home-loan debt a month to begin its third round of bond purchases.