Taper Tantrum Erased With Mortgage Yields at 16-Month Low
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In the market for U.S. mortgage bonds, it’s almost as if the turmoil that became known as the taper tantrum never happened.
Yields on government-backed securities that guide home-loan rates have dropped to the lowest in 16 months, erasing most of the increase triggered last year when the Federal Reserve signaled it would start scaling back its rate-suppressing stimulus measures. Benchmark Fannie Mae notes fell to 3 percent as of 11 a.m. in New York, from as high as 3.81 percent in September 2013.