Fed to make next Treasury purchases today

By Dow Jones Newswires
Posted Dec. 28, 2010 at 7:50 a.m.

The Federal Reserve is scheduled on Tuesday to buy Treasurys targeting maturities between June 30, 2013, and Nov. 30, 2014.

The buying will be part of the Fed’s $600 billion Treasury-bond buying program. By buying Treasurys regularly until June, the Fed hopes to push long-dated borrowing costs lower for consumers and businesses to boost an economic recovery.

The operation will be conducted during late-morning session by the Federal Reserve Bank of New York. The result will be released shortly after 11 a.m. EST.

Fed funds were last quoted at 0.2050 percent, compared to the federal-fund target range of 0 to 0.25 percent, according to Tullett Prebon data.

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2 comments:

  1. AC Dec. 28, 2010 at 10:04 pm

    What they are really doing is holding interest rates on government notes down, because if the Fed wasn’t buying them, at current interest rates, nobody would be.

  2. aelfheld Dec. 29, 2010 at 11:35 a.m.

    Meteor or meteorite?