Tuesday, March 24, 2009

Fed to Start Buying Longer Term Treasury Securities on Wednesday

by Calculated Risk on 3/24/2009 03:00:00 PM

From the New York Fed: New York Fed Issues Tentative Operation Schedule, FAQs for Treasury Purchases, Updated FAQs for Agency Debt and Agency MBS Purchases

The first outright Treasury coupon purchase will be conducted on Wednesday, March 25, 2009, and will settle Thursday, March 26, 2009. Results will be posted on the New York Fed’s website following the operation.

Starting on Wednesday, April 1, 2009, and continuing every two weeks, the New York Fed will issue a tentative operation schedule for its purchases of longer-dated Treasury securities, including the maturity sector or sectors to be targeted.
According to the current schedule, the Fed will be buying 7 to 10 year securities tomorrow. On Friday they will be buying 2 to 3 year securities. And on Monday they will buying in the 17 to 30 year range.