Fed buys $2.4 billion of Fannie, Freddie, FHLB debt

NEW YORK (Reuters) - The Federal Reserve bought $2.4 billion of Fannie Mae FNM.P, Freddie Mac FRE.P and Federal Home Loan Banks debt in permanent coupon purchases on Thursday in an ongoing effort to lower mortgage rates.

Dealers submitted $4.36 billion for consideration in the Fed purchase. The Fed made its heaviest purchases in Fannie Mae's 6.125 percent notes maturing in March 2012 and Freddie Mac's 3.25 percent notes maturing in February 2011, buying over $335 million of each.

Of the 36 classes of notes available, the Fed did not make purchases in 16 classes.

The Fed began the program to lower rates on Friday, Dec. 5 when it bought $5 billion of agency debt.

For more details on the operation please click on: here

(Reporting by Chris Reese; Editing by Theodore d'Afflisio)