rate hedge -- use treasury to hedge mortgage

--Mortgage-bond investors typically buy Treasuries when ratesfall and consumers refinance home loans, giving investors backtheir money sooner than anticipated and forcing them to reinvestin new securities at lower rates. Treasuries, meanwhile, usuallyrise in value. --Purchases of government debt by mortgage bondholders tend to lower yields by about half a percentage point during a rally, according to research by Frankfurt-based Deutsche Bank AG.