U.S. home-loan bonds without government backing are failing to trade at investor auctions at the fastest pace this year as prices tumble after a rally, Bloomberg News reported yesterday. The share of non-agency bonds reported by dealers as not trading after being included in widely marketed auctions rose to 44 percent in the first half of June, up from 18 percent last month, according to data from New York-based Empirasign Strategies LLC, which tracks the information. A total of $9.5 billion of the debt was offered, about the same pace as in the first four months this year, after $32.3 billion in all of May. Typical prices for senior securities backed by option adjustable-rate mortgages dropped to 68 cents on the dollar last week from 74 cents a month earlier, as concern that the Federal Reserve will curb its bond buying roils financial markets, Barclays Plc data show.
