There are some hints of improvement: Fannie Mae today sold $1 billion of three-month bills at a yield of 1.55%, down from 2.35% at last week’s sale.
Although Fannie Mae has essentially been nationalized, some investors still have been unwilling to buy the company’s debt, preferring Treasury securities instead.
So the sharp decline in Fannie’s three-month bill yields today suggests “a movement toward risk- taking,” says Tony Crescenzi, bond market strategist at Miller, Tabak & Co. in New York.