The Federal Reserve bought $4.76 billion in Treasury securities as part of its plan to lower borrowing costs that is known as Operation Twist.
The central bank bought debt maturing from April 2018 to November 2019 in its second open-market operation of the day, according to the Federal Reserve Bank of New York’s website. It purchased $1.843 billion of notes due in February 2036 to May 2041 earlier.
The Fed is replacing $400 billion of short-term debt in its portfolio with longer-term Treasuries to limit borrowing costs and counter risks of a recession.
To contact the reporter on this story: Liz Capo McCormick in New York at email@example.com
To contact the editor responsible for this story: Paul Cox at firstname.lastname@example.org