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  • 2015-05-29 16:11

    WASHINGTON (MNI) - The following is the text of Fannie Mae's April highlights, published Friday:

    - Fannie Mae's Book of Business decreased at a compound annualized rate of 2.1 percent in April.

    - Fannie Mae's Gross Mortgage Portfolio decreased at a compound annualized rate of 17.4 percent in April.

    - The Conventional Single - Family Serious Delinquency Rate fell five basis points to 1.73 percent in April; the Multifamily Serious Delinquency Rate decreased two basis point to 0.07 percent in April.

    - The Effective Duration Gap on Fannie Mae's portfolio averaged zero months in April.

    - Fannie Mae completed 9,279 loan modifications in April for a total of 35,979 loan modifications in the four months ended April 30, 2015.

    --MNI Washington Bureau; tel: +1 202

  • 2015-05-29 14:45

    --Bond Market A Bit Too Complacent
    --Sees US 10-Year Yield Capped at 2.75%, Unless Overseas Rates Rise

    OTTAWA (MNI) - Whether economic data for the second quarter and forward come in stronger or weaker than he expects, Federated Investors senior portfolio manager and head of multi-sector strategies Donald Ellenberger is positioning his portfolios for a curve flattening, he told MNI Friday.

    As he expects the Federal Reserve to start hiking interest rates in September, interest rates will increase mostly at the front end of the curve, he said, adding that the market might be somewhat too complacent in its expectations of a later start to the tightening that could prove a bit more aggressive than priced in.

    When the markets' expectations adjust to reflect an

  • 2015-05-29 11:38

    --McAndrews, Economists Suggest Creating Segregated Balance Accts
    --SBAs Needed To Supplement Overnight Reverse Repos, Other Tools

    By Steven K.

  • 2015-05-29 09:52

    By Steven Arons

    DRESDEN(MNI) - US Treasury Secretary Jack Lew issued a strong appeal to his European counterparts Friday to find a quick solution to the ongoing Greek crisis, warning that failure to do so risked a default or a Greek exit from the Eurozone and possible damage to the global economy.

    Speaking at the press conference of the US delegation after the conclusion of the G-7 summit in Dresden, Lew called on both sides of the negotiation table to make concessions.

    "At some point, there won't be the ability for Greece to pay its bills and that will be the moment when, if it comes, there will be an accident," Lew said. "If you want to avoid that, the sooner the better."

    "Waiting until a day or two before whatever the next deadline is is just a way of courting a

  • 2015-05-29 09:39

    -- ECB Weidmann Says G-7 To Monitor Financial Stability Risks

    DRESDEN(MNI) - German Finance Minister Wolfgang Schaeuble on Friday sought to tone down the noisy debate around negotiations with Greece and a potential Greek default.

    At a press conference concluding the G-7 Summit in Dresden, Schaeuble said Greece had only taken up a "few minutes" of the official discussions, starkly contradicting comments made by US U.S. Treasury Secretary Jack Lew, who said there had been "quite a number of conversations" both during the formal meetings and on the margins.

    "You should not draw any conclusion from the fact that, against some expectation from media, we stuck to our agenda and Greece is not on the agenda," Schaeuble said.

  • 2015-05-29 09:02

    By Jack Duffy

    PARIS (MNI) - Europe's rescue fund, the ESM, said Friday that it does not expect to post losses in 2015 but is in talks to change its investment guidelines due to the constraints posed by very low interest rates.

    "As a result of the low interest-rate environment and the rules of the ESM investment guidelines, part of the paid-in capital are invested in assets with negative yields," an ESM spokesperson said in a e-mailed statement.

    "In order to react to this, the ESM is in discussion with its shareholders, the 19 euro area finance ministers, how to adjust the investment guideline," the statement said.

    Reuters reported earlier Friday that more than half of the ESM's paid-in capital of E80 billion was invested in assets with negative yields.

  • 2015-05-29 07:16

    Repeats Story Initially Transmitted at 19:30 GMT May 28/15:30 EST May 28

    --Scrap Metal Processors: Demand For Metal Feedstock Creeps Higher After Q1


    --Manufacturing Demand for Scrap Uneven, Auto Still Sturdy

    NEW YORK (MNI) - U.S. demand for scrap metal, the feedstock for so much of the manufacturing sector, has crept higher in April and May from a first-quarter slump, according to scrap processors and industry experts.

    Scrap industry professionals told MNI the recent directional trend in scrap demand suggests a slight improvement in the economy in the second quarter, but they noted demand is uneven across sectors. Suppliers to the automotive industry are growing their orders.

  • 2015-05-29 05:46

    BEIJING (MNI) - The People's Bank of China conducted stress tests on 28 banks at the end of last year, concluding that the system is largely resilient to credit, liquidity and interest and exchange rate risk.

    The tests were revealed in the bank's latest financial stability report which found most average capital adequacy ratios remaining over 10.5% under even its worst-case scenarios, though four unidentified lenders failed to meet that ratio under the PBOC's liquidity stress tests.

    The PBOC conducts intermittent tests on system lenders though this latest batch comes amid growing concerns about the health of China's financial environment as credit risks rise and capital flows out of the country.

  • 2015-05-29 04:17

    By Jack Duffy

    PARIS (MNI) - France's housing starts continued to decline in the three months through April as a hoped-for rebound in one of the economy's key sectors showed few signs of materializing.

    Starts fell by 2.6% in the April-February period compared with the previous three months, while building permits dropped by 1.9%, the Ministry for Ecology and Development said Friday. Compared with a year earlier starts and permits were down 6.2% and 6.8%, respectively.

    After falling from 421,000 in 2011 to 297,000 last year, housing starts have been expected to rebound to around 360,000 this year, according to the French builders group Federation Francaise du Batiment.

    The rebound in building should be helped by stronger sales and slightly firmer prices.

  • 2015-05-29 04:08

    By Martin Baccardax

    LONDON (MNI) - Eurozone money supply advanced firmly in April, according to data from the European Central Bank released Friday, but private sector loan growth stagnated after notching its first positive reading in three years last month.

    The so-called broad money measure of money supply, M3, expanded by 5.3% last month, the ECB said during a teleconference release in Frankfurt, up from 4.6% in March and well ahead of the MNI median forecast of 4.9%.

    The three-month average rate also improved to 4.7% during the February to April period compared to 4.1% in the previous three-month measure.