September 20, 2017 / 6:32 PM / a year ago

Fed takes balanced approach to trimming U.S. bond holdings

NEW YORK, Sept 20 (Reuters) - The Federal Reserve will reduce its bond holdings evenly across the maturities of Treasury bonds, and will continue focusing on newly issued mortgage bonds as it trims reinvestments.

In gradually trimming some of its $2.5 trillion in Treasuries, the New York Fed said it would “allocate that rollover amount across the month’s maturity dates in proportion to total maturities” held on each date.

In trimming some of its $1.8 trillion in mortgage-backed securities (MBS), it said it would continue to concentrate on “newly-issued agency MBS in the To-Be-Announced market,” as is “consistent with current practice.” (Reporting by Jonathan Spicer and Richard Leong; Editing by Jonathan Oatis)

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