Excerpt from: Spot Forex
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| July 11, 2008 | | Spread bets and CFDs on US government bonds | Spread betting and contracts for differences on US Treasuries should consider that they are heading rather dramatically down right now.
The main reason for the slide of US government bonds on the bond market is the idea that Fannie Mae and Freddie Mac won't be allowed to fail.
Amidst rumours and accusations that the two government chartered mortgage lenders are insolvent, there is also speculation that the US government will do what it takes in order to keep the two companies up and running. This is because of how integral the mortgage lenders have become to the American mortgage market.
| Topic Tags: CFDs, contracts for differneces, Fannie Mae, Freddie Mac, spread bets, spread bets bonds, spread betting, spread betting US Treasuries, US government bonds | |
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