The Federal Reserve will be buying $75 billion in Treasurys on Thursday and Friday as the central bank continues its efforts to keep markets flowing smoothly amid the coronavirus crisis.
In the latest in a frenzied series of developments, the New York Fed laid out a schedule for buying it will undertake across a series of maturities.
In all, the purchases will total $75 billion, an acceleration from the $40 billion total the Fed had originally set when it announced its latest operations to expand its balance sheet.
The schedule looks like this:
9:40 – 10:00 am: Treasury Coupons 7 to 20 year sector, for around $6 billion
10:30 – 10:50 am: Treasury Coupons 4.5 to 7 year sector, for around $11 billion
11:20 – 11:40 am: Treasury Coupons 2.25 to 4.5 year sector, for around $17 billion
12:10 – 12:30 pm: Treasury Coupons 0 to 2.25 year sector, for around $25 billion
1:00 – 1:20 pm: Treasury Coupons 20 to 30 year sector, for around $9 billion
1:50 – 2:10 pm: TIPS 1 to 7.5 year sector (Thursday)/TIPS 7.5 to 30 year sector (Friday), for around $7 billion
In a separate announcement, the New York Fed said it would conduct an additional $10 billion of purchases in the mortgage-backed securities space “to address highly unusual disruptions in the market” that are “associated with the coronavirus outbreak.”
That operation will happen from 11:15-11:45 a.m. ET for settlement on March 23.
Trader Georgi Bozhidarov