Transcripts of the monetary policymaking body of the Federal Reserve from 2002–2008.

Thank you. Dino, with regard to your reference to the possibility that the decline in longer-term U.S. Treasury yields is associated with Fannie Mae’s hedging needs, I’ve seen that mentioned in the press too. I know nothing about the flows through Fannie Mae. But the presumption must be that the amount that they require compared with the floating stock is quite large and—it’s sort of a tomato crop theory of bond pricing here—that Fannie has to do something else. I don’t know what the other balance sheet entries are. What else do they do or not do if in fact they do buy ten-year Treasuries to hedge?

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