Forum > View Topic
by Ashraf Laidi
Posted: Feb 22, 2010 5:00
Comments: 2338
Posted: Feb 22, 2010 5:00
Comments: 2338
Forum Topic:
USD
Discuss USD
FED: NY Fed statement: In implementing FOMC (reinv) policy, Fed
will follow operating practices similar to QE2. "Purchases will be
allocated across maturities according to a distribution that is nearly
identical to that executed under the Treasury purchase program. The only
change to the distribution is that the two maturity sectors beyond 10
years from the earlier purchase program will be combined into a single
maturity sector of 10 to 30 years in order to achieve greater
operational simplicity. Specifically, the Desk plans to distribute
purchases across seven maturity sectors based on the following
approximate weights: 1.5-2.5y 5%, 2.5-4y 20%, 4-5.5y 20%, 5.5-7y 23%,
7-10y 23%, 10-30y 6%, TIPS 3%. On-run 7y will be considered 5.5-7y and
on-run 10y part of 7-10y sector. TIPS weights are based on unadjusted
par. The size and frequency of operations will be reduced to levels
commensurate with agency debt and MBS principal payments. Fed antic
one op per month in each sector. Schedule is due around the 8th biz day
of mo, to cover thru middle of the following month. Next due July 13.
Ashraf