Market Analysis

The Federal Reserve announced they would reinvest in long term Treasury notes principal payments they are receiving from Fannie Mae and Freddie Mac debt and mortgage-backed securities (MBS).  The initial market response has been improvement in stocks (the Dow is now close to break even after being down slightly over 100).  The 10 year Treasury note has also rallied.  Fannie Mae and Freddie Mac MBS have improved slightly but have not moved in a sharp direction upward in price (price has an inverse relationship to yield/rate) so far.

Posted by Matthew Breston on August 10th, 2010 1:34 PMPost a Comment (0)

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