Wednesday, May 27, 2009
Re-inflating a busrt bubble?
Bloomberg: Mortgage-Bond Yields Soar, Jeopardizing Fed’s Housing Effort
The Fed, seeking to use lower home-loans rates to stem the housing slump and bolster consumers, said March 18 it would increase its planned purchases of so-called agency mortgage bonds by $750 billion, to as much as $1.25 trillion, and start buying government notes. Rising mortgage-bond yields, driven higher in part by climbing Treasury rates, means the Fed now “faces a challenge to its ability to sustain low mortgage rates,” according to Jeffrey Rosenberg at Bank of America Corp.
Posted by yoss @ 06:45 PM (212 views) Add Comment
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