Treasuries Fall on Bets U.S. Subprime Plan to Support Economy

Mortgage and Lending with Kris Krajecki - FOX VALLEY MORTGAGE - Huntley, IL
Treasuries fell on speculation a U.S. government plan to curb foreclosures on home loans will limit the risk of recession in the world's largest economy.

All U.S. debt securities yield less than the Federal Reserve's target rate for overnight lending between banks!!

There will certainly be a cut in borrowing costs on the 11th - the next time that teh FED meet.

President George W. Bush today will announce a freeze on some subprime mortgages to stop a wave of foreclosures.

The London interbank offered rate, the amount banks charge each other for such loans, increased 1 basis point to 4.88 percent, the highest since December 2000, and its 17th straight day of gains. The three-month dollar Libor rate was little changed at 5.15 percent, near a seven-week high.

ARM's are usually based off of LIBOR (look above), so should your loan reach the reset period.....well, OUCH!

Bush's plan may work.....for now.


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Kris Krajecki

Mortgage Broker Huntley, IL
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