Fannie Mae fell 1 percent to $2.95 at 9:35 a.m. in New York, after dropping 25 percent from mid-August through last week. Freddie Mac slipped 2 percent today.
Even as bond managers have taken on more risk as 2014 progressed, they’re still looking to shield against rising yields that can lead to losses on fixed-income securities.
Any new buying of government-backed mortgage bonds by the Federal Reserve will be limited to no more than $500 billion to $600 billion per year by supply constraints, according to Barclays Plc.
