U.S. Fed buys $7.2 bln of mortgage bonds, sells none
NEW YORK, July 31
NEW YORK, July 31 (Reuters) - The Federal Reserve bought $7.205 billion of agency mortgage-backed securities July 24-30, less than the $9.508 billion purchased the previous period, the New York Federal Reserve Bank said on Thursday.
In a move to help the housing market begun in October 2011, the U.S. central bank has been using funds from principal payments on the agency debt and agency mortgage-backed securities, or MBS, it holds to reinvest in agency MBS.
The New York Fed said on its website the Fed sold no mortgage securities guaranteed by Fannie Mae, Freddie Mac or the Government National Mortgage Association, or Ginnie Mae, in the latest week. It sold none the prior week.
On Wednesday, the Fed said it will further reduce its purchases of MBS starting in August to $10 billion a month from $15 billion, as the central bank aims to wrap up its third round of large-scale bond buying due to continued improvement in the U.S. economy. (Reporting by Richard Leong; Editing by James Dalgleish)
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