Treasuries Finish Lower

Treasuries fell after Fannie Mae indicated it would purchase new mortgages rather than government securities to stave off falling interest rates

Key legs supporting record yield lows were knocked out from under the Treasury market Tuesday, chopping a point off the long bond. An advance report from Fannie Mae that its historic wide duration gap had been narrowed back to -10 months in September from -14 months crippled the Treasuries overnight and the market never recovered.

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