UPI NewsTrack Business

Outflows of junk bond funds decline

ARCATA, Calif., Dec. 31 (UPI) -- AMG Data Services of Arcata, Calif., said Friday high-yield bond funds reported $87.53 million of withdrawals in the week ended Wednesday.

The asset class has posted modest outflows for the last several weeks as investors position for the end of the recent rally. This week marks the sixth consecutive week that money has flowed out of the funds.

Last week, the funds reported $118.1 million was withdrawn from the funds.

In the last week, the high-yield market has ground to a near halt, as the Christmas and New Year's holidays have inhibited trading volume.

In the week ended Wednesday, the number of funds reporting inflows rose to 170 from 159, while the number reporting outflows fell to 183 from 195.

Mortgage rates rise

MCLEAN, Va., Dec. 31 (UPI) -- Freddie Mac of McLean, Va., said Friday that mortgage rates rose during the week ending Dec. 30.

Freddie Mac said the rate on the popular 30-year fixed-rate mortgage rose to an average 5.81 percent, with an average 0.6 in fees and points, up from last week when it averaged 5.75 percent. A year ago, the 30-year loan averaged 5.85 percent.

In 2004 mortgage rates averaged around 5.84 percent, the second lowest annual rate Freddie Mac had ever recorded, said Amy Crews Cutts, Freddie Mac deputy chief economist.

The average rate for the 15-year loan this week was 5.23 percent, with an average 0.6 in fees and points, up from last week when it averaged 5.18 percent. A year ago, the 15-year averaged 5.15 percent.

One-year Treasury-indexed adjustable-rate mortgages averaged 4.19 percent this week, with an average 0.6 in fees, up slightly from last week when it averaged 4.17 percent. A year ago, the one-year averaged 3.72 percent.

Freddie Mac purchases mortgages from lenders and packages them into securities that are sold to investors.

Certificates of deposit inch higher

NEW YORK, Dec. 31 (UPI) -- Moneyrate.com of New York said Friday rates on short term certificates of deposit inched higher during the week ending Dec. 30.

Moneyfund.com said the rate on the 1 month certificate of deposit rose to 1.12 percent from 1.08 percent a week earlier while the rate on the 3 month CD inched up to 1.67 percent from 1.66 percent a week ago.

The group said the rate on the 6 month certificate of deposit rose to 1.95 percent from 1.94 percent a week earlier while the rate on the 9 month CD improved to 2.50 percent from 2.47 percent a week ago.

The rate on the 1-year CD remained at 2.51 percent.