NEW YORK, March 26 (Reuters) - The Federal Reserve posted the menu of U.S. Treasury securities on Wednesday that Wall Street dealers can receive in exchange for their holdings of risky mortgage assets in an auction to be held on Thursday.
Fed’s Term Securities Lending Facility (TSLF) is part of a campaign by the central bank to aid a beleaguered U.S. financial sector, which has suffered $120 billion in write-downs tied to bad mortgage investment.
TSLF’s debut auction on Thursday, worth $75 billion, features a range of low-risk U.S. government securities that will mature 2008 to 2028, the New York Fed said on its Web site.
Results of the TSLF auction for 28-day funding will be announced at about 2:30 p.m. (1830 GMT) on Thursday.
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