Following their announcement last week, The New York Fed started buying mortgage bonds as of Monday. When bond prices rise on buying activity, yields (or rates) drop. Their target is to buy about $500b of mortgage bonds over the coming months to help push rates down and keep them down. They’ve hired Blackrock, PIMCO, Goldman
Wellington
Yesterday the Fed confirmed their pre-Thanksgiving commitment to buy $500b in Fannie/Freddie bonds to push mortgage bonds. They they’ve hired BlackRock, Goldman Sachs, PIMCO and Wellington to manage the purchases which are set to begin early January. Mortgage bonds have already had another rally on the news. For obvious reasons, investors want to get in