The Fed to start buying Treasurys Friday across all durations

From CNBC:

The New York Federal Reserve will begin buying Treasurys across the yield spectrum as part of its efforts to help the financial system through the coronavirus scare.

In an announcement Friday, the central bank said it was accelerating to Friday purchases it announced a day before. The move comes in response to market demand that the Fed act immediately to quell what has been an extraordinarily volatile time in the bond market, with yields sinking to historic lows amid rising liquidity concerns.

Yields at the long end of the curve jumped after the Fed’s announcement though gains in the stock market decreased.

The schedule for Friday’s operations looks like this:

About $4 billion each in 20- to 30-year purchases from 10:30-10: 45 a.m. ET.

About $5 billion in the 7- to 20-year space from 11:15-11:30 a.m. ET.

About $8 billion in the 4.5- to 7-year sector from 12:45-1 p.m. ET.

About $8 billion in the zero- to 2.25-year sector from 1:30 to 1:45 p.m. ET.

You may also like...

Leave a Reply