Last week's hearings on a bill to toughen oversight of Fannie Mae and Freddie Mac reassured the market for the two government-sponsored enterprises' debt.

Fannie and Freddie officials were stubborn in testifying against the bill before a House Banking subcommittee last Tuesday, which seemed to confirm predictions that the legislation would go nowhere this year. Accordingly, investors bid up the price of agency debt securities, pushing yields lower.

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