www.varchev.com

The Fed will be buying $75 billion in Treasurys today and Friday as part of stimulus effort

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


Read more:
RECCOMEND WAS THIS POST USEFUL FOR YOU?
If you think, we can improve that section,
please comment. Your oppinion is imortant for us.
WARNING: Any news, opinions, research, data or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. Varchev Finance Ltd. expressly disclaims any liability for any lost principal or profits which may arise directly or indirectly from the use of or reliance on such information. Varchev Finance Ltd. may provide information, quotes, references and links to or from other sites and blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the sites, blogs or other sources of information.
Varchev Finance