Why is the Desk purchasing longer-dated Treasury securities and selling shorter-dated Treasury securities?
How does buying longer-dated Treasury securities and selling shorter-dated Treasury securities support a stronger economic recovery?
What Treasury securities will the Desk purchase?
*The on-the-run 10-year note will be considered part of the 8- to 10-year sector.
What will be the effect of these actions on the average duration of the SOMA’s Treasury holdings?
What Treasury securities will the Desk sell?
How will the Desk purchase and sell securities in the open market?
How much will the Desk purchase and sell each month in Treasury securities and how will this be communicated?
What is the maximum amount the Desk will purchase in each issue?
What is the maximum amount the Desk will sell of its Treasury holdings?
What will the Desk do with proceeds from maturing Treasury securities?
How much will the par value of domestic securities held in the SOMA vary as a result of this program?
How will the Desk adjust for any unexpected deviations between anticipated and actual Treasury purchases or sales over a given monthly period?
How would a change in the FOMC directive be reflected in the Desk’s published schedule?
Will the Federal Reserve lend the Treasury securities it purchases through this program?
How will the SOMA’s securities lending facility be affected by sales associated with this program?
How will the purchases be conducted?
How will the sales be conducted?
How often will the Desk conduct operations to purchase and sell Treasuries?
Initially, the Desk anticipates conducting approximately 5 operations to sell nominal Treasury securities and one operation to sell TIPS each month. The Desk plans to divide the SOMA’s nominal Treasury holdings into 5 maturity ranges, each of which will include roughly one-fifth of SOMA holdings maturing in 3 months to 3 years. The Desk plans to sell between $8 billion and $9 billion in par value in each nominal operation and between $1 billion and $1.5 billion in par value in each TIPS operation. Operation amounts may vary modestly from month to month, though the Desk will ensure that $400 billion in par value will be sold across both nominal and TIPS holdings by the end of the program.
Who is eligible to transact with the Federal Reserve under this program?
How many offers or bids can a dealer submit during a purchase or sales operation?
What is the minimum amount for which a dealer may submit bids or offers?
When and how does Treasury security settlement take place?
Whom should dealers call if they experience difficulties during the operation?
How will the Desk communicate the operation results?