Although the Federal Reserve Bank of New York has maintained throughout the auction of its Maiden Lane II portfolio that it is happy with the sales, the pricing dynamics in the market today might have been enough to make the government rethink its strategy, at least for the short term.

According to market sources, the New York Fed, on a conference call yesterday with dealers said it would offer no more bonds from the portfolio until June 6. That means that for the next two weeks the ML II asset sales will cease. One market trader said that the Fed plans one sale on June 6, and then none until after July 4.

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