Government Intervention in the Mortgage Market
by Tom on May 29, 2009
in Market Musings
I had talked earlier this week about how we’d have to have a massive government intervention in the bond markets to get the rates back down to where they were.
Could this “story” be a leaked signal by the government that they aren’t going to do that?
Just asking the question, what do you think?
Tom Vanderwell
Fed Not Setting Rates in Credit Markets: Sources – Economy * US * News * Story – CNBC.com
The $1.2 trillion in mortgage assets and $200 billion in Treasurys bought by the Fed in an attempt to backstop the troubled credit market were not designed to impact rates, the sources said.Yields on 10-year U.S. government bonds jumped more than 50 basis points in the last two weeks, which unnerved many investors
