T-bonds, money markets getting flaky again
LIBOR rates also continue to rise despite the general easing path the Federal Reserve has been on. Three-month, U.S.-dollar LIBOR rose to 5.05% this morning vs. a recent low of 4.87% on November 2. The Fed is reacting by arranging some long-term repurchase agreements -- $8 billion worth.
UPDATE: This latest move up in bond prices/drop in Treasury yields roughly coincided with sharp intraday spikes down in shares of Fannie Mae and Freddie Mac . No reason that I can find for the move so far.
UPDATE2: Bonds are flying ... and I mean flying. Long bond futures are now up a whopping 2 8/32 points.