Reuters logo
Factbox: What the twisting Fed plans to buy and sell
September 21, 2011 / 7:42 PM / in 6 years

Factbox: What the twisting Fed plans to buy and sell

(Reuters) - The U.S. central bank is launching a program that will tilt its $2.85 trillion balance sheet more heavily toward longer-term securities, in an effort to boost a fragile economic recovery.

The Federal Reserve said on Wednesday it plans to buy $400 billion in Treasuries with remaining maturities of 6 to 30 years by June 2012, and sell an equal amount of Treasuries with maturities of 3 years and less.

The Fed will also reinvest principal payments from its agency debt and agency mortgage-backed securities holdings into agency MBS starting October 3.

The following is how much, and where, the Fed plans to buy -- though it notes this could change depending on market conditions:

* 32 percent of six to eight year maturity range

* 32 percent of eight to 10 year maturity range

* Four percent of 10 to 20 year maturity range

* 29 percent of 20-30 year maturity range

* Three percent of TIPS (6-30 years)

At the same time, the Fed plans to sell roughly three quarters of its holdings of Treasury securities with remaining maturities between 3 months and 3 years.

For more, see: here

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below