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Fed says bought $1.8 billion in agency debt

Published 02/13/2009, 11:14 AM
Updated 02/13/2009, 11:16 AM

NEW YORK, Feb 13 (Reuters) - The Federal Reserve bought $1.8 billion of debt issued by Fannie Mae , Freddie Mac and the Federal Home Loan Bank System on Friday, the New York Fed said on its Website.

Dealers submitted $3.7 billion in bids in the auction.

The Fed bought agency debt securities maturing between February 2010 and December 2010 in an outright coupon purchase.

In a series of such purchases that began in early December, the Fed has so far bought roughly $30 billion of these agency securities toward its goal of up to $100 billion.

The Fed in November said it would buy these notes, as well as up to $500 billion in agency-issued mortgage bonds, aiming to cut mortgage rates and revive the housing market. (Reporting by Kristina Cooke and Richard Leong; Editing by James Dalgleish)

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