Fannie, Freddie, FHLB Short-Term Debt Spreads Rise to Record

The difference between yields on 90-day agency discount notes and 3-month Treasury bills rose 44 basis points today to 240 basis points, the highest in at least 11 years, according to data compiled by Bloomberg.

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The market for agency discount notes had been disrupted by the shift of some investors to Treasury-only money-market funds, New York Fed spokesman Andrew Williams said in an e-mail message on Sept. 19. As a result, ``other money-market mutual funds have apparently attempted to sell large volumes of agency discount notes, further reducing liquidity in this market,'' he said.