Fed to buy $10 billion agency MBS in early October
NEW YORK (Reuters) - The Federal Reserve plans to buy $10 billion in agency mortgage-backed securities in early October with proceeds from maturing agency debt and MBS, the New York Federal Reserve said on Monday.
On Sept 21, the Federal Open Market Committee, the central bank's policy-setting group, decided to reinvest money from maturing mortgage-related securities with the goal to help the struggling housing market.
In Aug 2010, the FOMC decided to use this money to buy longer-dated U.S. Treasuries.
As of Sept 21, the New York Fed said the Fed's agency debt and MBS holding totaled $988 billion after it bought $1.4 trillion of these securities from Dec 5, 2006 and March 31, 2020.
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(Reporting by Richard Leong)