By Kim Khan
Investing.com - The Federal Reserve gave the market specifics Friday about the quantitative easing program it’s ramping up, detailing purchases of Treasury securities today.
Today, the New York Fed’s Open Market Trading Desk will buy Treasuries out to 30-year bonds to “address temporary disruptions in the market”.
The Fed will look to buy around $37 billion in five maturity sectors, with $17 billion in purchases of maturities of seven years or more.
“These purchases are part of the $80 billion of planned monthly purchases, including both $60 billion of reserve management purchases and $20 billion of reinvestments of principal payments received from the Federal Reserve’s holdings of agency debt and agency mortgage-backed securities,” the Fed said.
The yield on the benchmark 10-Year Treasury was higher, rising over 4 basis points to 0.90%.