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Bernanke Faith in Housing Seen in Mortgage Bonds: Credit Markets

Mortgage rates in the U.S., after increasing at the fastest pace in a decade, are poised to rise even further with Federal Reserve Chairman Ben S. Bernanke saying the central bank is ready to slow its purchases of Treasuries and bonds backed by housing loans.

Yields on Fannie Mae’s 3.5 percent, 30-year securities have soared 0.38 percentage point in the past two days to a 19-month high of 3.1 percent. The price tumbled 1.3 cents yesterday, the most since 2010, to 102 cents on the dollar, before falling to