Originally Posted by metalheader
Just in about 11:11am August 19th.
"Fed buys record $5.605 bln of agency debt Friday"
FNM, FRE are both part of the deal. This should make them fly for a while before some profit taking. Got in at 1.77
Housing data is positive as well. What do you think of the potential rally?
It was the invisible hand that sparked this rally.http://www.marketwatch.com/story/fed...-08-21-1215500
Aug 21, 2009, 12:15 p.m. EST
Fed buys record $5.6 billion in agency debt
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AlertEmailPrintShare By Deborah Levine
NEW YORK (MarketWatch) -- The Federal Reserve Bank of New York bought $5.605 billion in housing-agency debt on Friday, the biggest purchase since it began buying debt in the sector in December in the hopes of capping mortgage rates. It bought about half of the $11.209 billion offered to it by bond dealers, which analysts noted was rather high. The large purchase is a big switch from recent operations, which have slowly gotten smaller. Analysts hypothesized the central bank may have been trying to stretch out its purchases over a longer timeframe to improve the effect. "The size of today's purchase will lead many to pay greater attention to the next pass to see if the Fed is increasing the speed at which it purchases Agencies," said Dan Greenhaus, chief economic strategist at Miller Tabak. The Fed has bought $116.6 billion of the originally-stated $200 billion in debt issued by home-finance agencies Fannie Mae (FNM 1.20, +0.10, +9.09%) , Freddie Mac (FRE 1.73, +0.13, +8.13%) and the Federal Home Loan Banks, according to Morgan Stanley. The central bank has also bought hundreds of billions of dollars in mortgage-backed securities and Treasurys.