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To: CaptainMorgantown

This isn’t bailout related. For some odd reason the Treasury added extra 10 year bonds to their last auction at the last minute. It was unexpected extra supply and the yields went up. Fixed rate mortgages are tied to the 10 year bond. Some speculate that the Treasury wanted to make bonds less attractive as a safe haven so more money would go elsewhere. In any case it looks like a stupid move.


4 posted on 10/18/2008 11:51:31 AM PDT by Moonman62 (The issue of whether cheap labor makes America great should have been settled by the Civil War.)
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To: Moonman62

When t-bills are paying a better return wouldn’t more people be buying them?


6 posted on 10/18/2008 11:57:46 AM PDT by Terry Mross (O)
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To: Moonman62

also, a lot of investors went into Treasuries of all maturities for security during the stock market decline, and have started selling out of them to put money elsewhere. this temporarily moves rates upward.


8 posted on 10/18/2008 12:16:19 PM PDT by avital2
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