(Corrects magnitude of share price move in final paragraph)
Nov 30 Mortgage finance companies Fannie Mae
and Freddie Mac should no longer be owned by
the U.S. government, Treasury Secretary nominee Steven Mnuchin
said on Wednesday.
His comments sent shares of the two government-sponsored
enterprises to their highest levels since September 2014. Both
companies have been in U.S. government conservatorship since the
2008 financial crisis.
The risk premiums, or yield spreads on Fannie and Freddie's
bonds over U.S. Treasuries held steady from late on Tuesday.
Mnuchin delivered the remarks in an interview on Fox
Business Network, and Bloomberg reported them.
"People don't expect the government to just step away from
the GSEs," said Larry Milstein, head of government and agency
trading at R.W. Pressprich & Co in New York.
Fannie shares were last up 32 percent at $4.08, while
Freddie rose 31 percent to $3.99.
(Reporting by Dan Burns and Richard Leong; Editing by Lisa Von