Fannie Mae's current coupon mortgage-backed securities (MBS) yields relative to Treasuries narrowed to 1.45 percentage points. This change occurred on Wednesday, following the U.S. presidential election.
The narrowing represents a decrease from the 1.47 percentage points recorded at Tuesday's close. This movement in MBS spreads is a key indicator of market perception regarding the stability and risk of Fannie Mae's securities.
A tightening of MBS spreads can lead to lower funding costs for Fannie Mae, enhancing its ability to provide liquidity to the housing market. This development suggests increased investor confidence in the company's outlook following the election results.
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