“Fed May Reemerge as Bigger Buyer With Resumption of Treasury Purchases”
“The Federal Reserve will likely reemerge as the biggest buyer of Treasuries when it resumes purchasing U.S. government securities today to prevent money from draining out of the financial system.
JPMorgan Chase & Co. strategists estimate the Fed will buy about $284 billion in Treasuries over the next year, or more than the combined purchases of Japan and China during the year ended May. Analysts at Credit Suisse Group AG forecast purchases of $307 billion, with $47 billion coming from the proceeds of maturing agency debentures.
The central bank will acquire Treasury notes due from 2014 to 2016 today and debt due in 2016 to 2020 on Aug. 19 with the proceeds from its maturing mortgage holdings. The Fed was the biggest buyer in the Treasury market between March and October 2009 as it purchased $300 billion in Treasuries to help keep borrowing costs low and bolster the housing market.” Read more.
“Fed May Reemerge as Bigger Buyer With Resumption of Treasury Purchases”
Liz Capco McCormick
Bloomberg, August 16, 2010.
Image by Francesco Marino / FreeDigitalPhotos.net.
