Official sector shunning US mortgage agency debt

Despite the implicit government guarantee being made explicit last week, official institutions seem keen to sell paper issued by Fannie Mae and Freddie Mac, the two government-sponsored enterprises (GSEs) that insure half of the US's home loans.

The White House on 30 July signed into law a bill granting the US Treasury the power to bail out the GSEs. But figures out Thursday show central banks with accounts at the Fed are reducing their holdings in Fannie Mae and Freddie Mac debt.

The Fed's w