By Isobel Kennedy

NEW YORK, (MNI) – The New York Federal Reserve bought $13.8 billion Agency
mortgage-backed securities in the week ended November 14 under its combined
quantitative easing and monthly prepayment reinvestment programs.

The mortgage originators continue to sell 30-year “to-be-announced” or TBA
paper into the market and that is what the Fed continues to buy.

In the latest week, the Fed bought over $9 billion of Fannie Maes, Freddie
Macs, and Ginnie Maes with 3% coupons for delivery in December and January.

In other news, the agency MBS market had its first good day this week as
the large selling from money managers, hedge funds and
real-estate-investment-trust dried up.

There was also some buying from Asian accounts and domestic money managers
but it was deemed relatively modest.

For complete details of the Fed’s buying this week, please go to

http://www.newyorkfed.org/markets/ambs/

** MNI New York Newsroom: 212-669-6430 **

–email: ikennedy@mni-news.com

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