Yields on Fannie Mae and Freddie Mac mortgage securities declined Tuesday after driving up interest rates on new home loans as they climbed over the past three weeks.

The yield on Fannie's current-coupon 30-year fixed-rate mortgage bonds fell 4 basis points, to 4.98% as of 9:53 a.m. Eastern Daylight Time.

On Monday the yield reached the highest since the Federal Reserve announced plans to buy home-loan bonds in November. It had been 3.94% on May 20.

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