Mortgage-Bond Prices Rise to New Highs, Defying Treasury Slump
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Mortgage securities with U.S.-backed guarantees climbed to a record for a second day even as prices of benchmark Treasuries fell, pushing yields on 10-year government notes to the highest since July 15.
The average price of bonds guaranteed by government-supported Fannie Mae and Freddie Mac or federal agency Ginnie Mae rose to 106.69 cents on the dollar, up from 106.21 cents on June 30, according to Bank of America Merrill Lynch’s Mortgage Master Index. Yields on Fannie Mae’s current-coupon securities that guide loan rates rose, though less than Treasury rates.