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Article: Treasury Move Should Trim Debt Costs.(10-year Treasury, Fannie Mae, Freddie Mac, mortgage rates)(Brief Article)(Statistical Data Included)
- Article from:
- American Banker
- Article date:
- November 5, 2001
- Author:
CopyrightCOPYRIGHT 2001 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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In addition to making Fannie Mae and Freddie Mac debt more attractive, the Treasury's suspension of 30-year bond issuance will reduce corporate debt costs, several experts said.
Since the government's announcement last Wednesday, 10-year Treasuries have surged in popularity, said Keith Gumbinger, the vice president of the HSH Associates mortgage research firm in Butler, N.J. That pushed the prices of those bonds up and their yields down.
Corporate debt securities and many other spread products tied to the 10-year Treasury yield are expected to follow.
The 10-year Treasury yield was 4.48% at last Monday's close. By Thursday it had fallen to ...