Mortgage securities stare down end of QE3 as rally persists
Market defies forecasts for slump tied to wind-down of Fed's stimulus programme
Thu, Oct 30, 2014 - 5:50 AM
Yields on benchmark Fannie Mae notes have shrunk 0.14 percentage point this year relative to government debt, narrowing to within 1.09 percentage points of an average of five and 10-year Treasury rates.
THE end of the Federal Reserve's third round of bond purchases is proving to be a non-event for mortgage-backed debt.
That's partly because even though the US central bank won't be adding more home-loan securities to its balance sheet, policymakers will still be buying...