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Bond Purchases

All articles tagged with #bond purchases

business2 days ago•14 min saved

Top-Tier Mortgage Rates Slip as 30-Year Hits 5.99%

Mortgage rates dipped back into the 5s, with the 30-year fixed at 5.99% today (down 0.05) as the broader bond market and MBS benefited from Fannie/Freddie bond-buying plans; no new news sparked the move and today’s improvement is modest compared with January’s brief visit to similar levels. Lenders’ quotes vary based on upfront costs and borrower specifics, so 5.99% is a top-tier average rather than a universal rate, and rates remain vulnerable to intraday reversals if the bond market moves against them.

via Mortgage News Daily|

#bond-purchases #business #freddie-mac

economy8 months ago•2 min saved

Bank of Japan to Reduce Bond Purchases Less Aggressively Amid Growth Concerns

The Bank of Japan announced it will slow its government bond purchase reductions starting April 2024, while maintaining interest rates at 0.5%, amid economic growth uncertainties and persistent inflation above its 2% target, with the economy showing signs of slowdown and contraction.

via CNBC|

#bank-of-japan #bond-purchases #economy

economy2 years ago•3 min saved

The Bank of England's Bond Purchases Lead to Major Losses and Diminish Tax Cut Hopes

The Bank of England is expected to face significantly higher losses on its bond purchases than previously projected, with Deutsche Bank estimating that the losses will continue to rise until the middle of the decade. The central bank's asset purchase facility (APF), implemented to support the UK economy after the financial crisis, has resulted in £150 billion ($189 billion) of losses, which will be backstopped by the UK Treasury. The costs have escalated due to the central bank's need to tighten monetary policy to combat inflation, resulting in a decline in the value of the purchased government bonds. The Treasury has already transferred £30 billion to the Bank of England, and the indemnities are expected to exceed government forecasts. This could impact the government's ability to make spending or tax-cutting pledges ahead of the 2024 general election.

via CNBC|

#asset-purchase-facility #bank-of-england #bond-purchases