Bloomberg News

Treasury Asks Bond Dealers About Fed’s ‘Operation Twist’

April 13, 2012

The U.S. Treasury Department asked bond dealers for their views on a Federal Reserve maturity extension program scheduled to end June 30.

The survey, released in a statement today, is for an April 26-27 meeting between Treasury officials and bond dealers in advance of the government’s quarterly auctions of notes and bonds next month.

The survey asked dealers what impact the end of the maturity extension program, known as “Operation Twist,” would have on the Treasury market. The central bank is pursuing a program announced in September to replace $400 billion of short- term debt in the Fed’s portfolio with longer-term securities.

The Treasury also requested dealers’ latest economic and fiscal forecasts for fiscal years 2012 and 2013, and asked whether the current auction schedule is well-suited to meet the Treasury’s expected financing needs.

Dealers were also asked to discuss “the increased utilization of electronic trading platforms in the Treasury market.”

To contact the reporter on this story: Ian Katz in Washington at ikatz2@bloomberg.net

To contact the editor responsible for this story: Chris Wellisz at cwellisz@bloomberg.net


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