Bloomberg News

Fed Buys $2.541 Billion of Debt in Second Open-Market Purchase

November 23, 2011

Nov. 22 (Bloomberg) -- The Federal Reserve bought $2.541 billion of Treasuries in a second open-market transaction today as part of a program to lower borrowing costs.

The central bank purchased Treasuries maturing from February 2036 to May 2041, according to the Fed Bank of New York’s website. It bought $4.962 billion of securities earlier today maturing from November 2017 through August 2019.

Two purchase operations were conducted today because of the Thanksgiving-holiday-shortened week. The Fed is replacing $400 billion of short-term debt in its portfolio with longer-term securities through June. The program has come to be known as Operation Twist, after a similar plan in the 1960s.

--Editors: Greg Storey, Dave Liedtka

To contact the reporter on this story: Liz McCormick in New York at emccormick7@bloomberg.net

To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net


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