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Mortgage-bond yields plummet after Fed decides not to taper

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Yields on Fannie Mae and Freddie Mac mortgage securities fell to the lowest level since Aug. 8, as the Federal Reserve refrained from slowing its monthly mortgage bond purchases. Per Businessweek:  

A Bloomberg index of Fannie Mae’s current-coupon 30-year securities dropped about 0.13 percentage point to 3.46 percent at 2:17 p.m. in New York, the lowest since Aug. 8. The yields, which reached 3.81 percent on Sept. 5, have jumped from as low as 2.28 percent in May as speculation grew that the Fed would pare monthly debt purchases that include $40 billion of government-backed mortgages securities.

Source: Businessweek
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