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News: Mortgage-Backed Securities Decline After U.S. Jobs Data
By Al Yoon | March 7, 2014

http://online.wsj.com/article/BT-CO-20140307-704838.html

Mortgage-backed securities slumped after the stronger-than-expected U.S. employment report for February was released Friday.

Prices of the bonds, which together with Treasurys are purchased as part of the Federal Reserve's monetary stimulus program, fell after the Labor Department said U.S. non-farm payrolls increased by 175,000 last month.

The hiring was stronger than the 152,000 expected in a Dow Jones survey of economists, and fueled expectations that the Fed could continue paring its bond purchases as economic growth accelerates.

Fannie Mae's 3.5% mortgage bonds fell 16/32 after the jobs data, to 100-14/32, the lowest on a closing basis since Jan. 22, according to Tradeweb. But the bonds were slightly outperforming Treasurys, said Walter Schmidt, head of mortgage strategy at FTN Financial.

Write to Al Yoon at [e-mail]