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RPT-NY Fed surveys dealers over QE worth up to $1 trln-Bloomberg

Published 10/28/2010, 06:23 AM

LONDON, Oct 28 (Reuters) - The New York Federal Reserve has surveyed bond dealers and investors over the size and impact of a programme of quantitative easing, including scenarios ranging from zero up to $1 trillion, Bloomberg news reported on Thursday, citing a copy of the survey.

Bond markets fell sharply earlier this week on a report that the Fed programme of monetary stimulus for the economy would be only several hundred billion spread out over a few months, compared to the up to $2 trillion expected by some analysts.

Bloomberg said the New York Fed had surveyed primary dealers required to bid in U.S. debt auctions, asking them to estimate changes in nominal and real 10-year Treasury yields "if the purchases were announced and completed over a six-month period."

The amounts dealers could choose from were zero, $250 billion, $500 billion and $1 trillion.

(London Treasury Desk, +44 207 542 4441)

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