Mortgage Spreads Tighten

The Fed's actions this morning have certainly helped to thaw the credit markets so far. As shown below, spreads between 10-year Fannie Mae (FNM) bonds and the 10-year US Treasury tightened significantly today. While they are certainly moving in the right direction, even after today's record decline, spreads are still higher today than they were just a little more than two weeks ago.

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