Mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac and the Government National Mortgage Association rose to their highest level for the year on Wednesday, buoyed by strong demand from investors seeking a safe haven as the year draws to a close.

Risk premiums on these bonds were 3 basis points narrower at 124 basis points over the yields of comparable Treasuries. The previous narrowest level this year was 129 basis points in May.

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