Fed's purchase plan tightens spreads on mortgage bonds

01/2/2009 | Bloomberg

News that the Federal Reserve is accelerating its schedule for buying $500 billion in mortgage bonds tightened spreads on Fannie Mae, Freddie Mac and Ginnie Mae mortgage bonds. Spending $500 billion in six months is "a lot of ammo to keep mortgage rates down," said Art Frank, head of mortgage-bond research at Deutsche Bank in New York.

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