Issuers of housing bonds in New York have purchased each other's variable-rate bonds in the past month as spiking interest rates have exceeded Treasuries.

Since mid-September, the New York City Housing Development Corp. has purchased about $150 million of variable-rate bonds from the New York State Housing Finance Agency backed by Fannie Mae. The State of New York Mortgage Agency and HFA have bought $50.5 million of each other's bonds - the first time this has ever happened. The spread between Treasuries and the agencies' debt widened to the point that the issuers said it made sense to buy the bonds instead.

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