Today the Federal Reserve Bank of New York bought $3.609 billion in Treasury debt maturing from 2016 to 2020, published reports said.
This is the second buyback operation after officials from the Fed announced last week that the central bank would purchase Treasurys by using the proceeds from maturing MBS to support the economic recovery. The Fed acquired 7 of the 27 maturities that were listed for possible purchase.
The Fed has already purchased $6.16 billion of Treasurys since it started the program on Aug. 17. It stated last week it will buy around $18 billion in Treasury securities in nine operations until Sept. 13. The purchases are the first outright acquisition of U.S. debt by the Fed since October.
For the first operation, the Fed bought around $2.5 billion of Treasurys. It intends to keep holdings in the System Open Market Account or SOMA at approximately $2.054 trillion, which is the amount it held on Aug. 4, reports said.
The Fed bought 14 out of the 25 securities listed for possible purchase for the first operation. The notes mature from August 2014 to February 2016, the Federal Reserve Bank of NY said Tuesday on its Web site.