The Federal Reserve confirms it plans to curtail its upport for US Treasury Securities as of 3/31/10. This is a big deal, signalling that market forces will once again creep into the determination of interest rates on mortgage-backed securities, allowing them to float back up to levels consistent with their risk. Meaning? Rising mortgage rates to meet investor expectations - David
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FED SIGNALS PULLBACK IN LIQUIDITY SUPPORT
By Krishna Guha in WashingtonPublished: December 16 2009 19:30 | Last updated: December 16 2009 23:26
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