by Calculated Risk on 7/18/2008 01:47:00 PM

From Bloomberg: Agency Mortgage-Bond Spreads Rise as Freddie Mac Ponders Sales

The difference between yields on Fannie Mae's current- coupon, 30-year fixed-rate mortgage bonds and 10-year government notes widened 5 basis points to 206 basis points [a four-month high], according to data compiled by Bloomberg.

This is still below the spread in March of 238 bps. The increase today is apparently due to comments made in a Freddie SEC filing.

Freddie Mac is considering selling assets carried below their value to maintain acceptable capital ratios, it said today in a filing with the U.S. Securities and Exchange Commission.

Selling of these assets (or less buying) would put pressure on the price. The end result would probably be higher mortgage rates.