Operating Policy
Statement Regarding Treatment of 20-year Nominal Coupon Bond in SOMA Operations
May 6, 2020

The U.S. Treasury has announced that it intends to begin issuing a 20-year nominal coupon bond (20-year bond), with the first auction occurring on May 20, 2020.  Consistent with past practices, the Open Market Trading Desk (the Desk) at the Federal Reserve Bank of New York is prepared to include the 20-year bond in System Open Market Account (SOMA) operations and treat it in a similar manner to other nominal coupon Treasury securities, effective immediately.  These SOMA operations include the Desk’s rollovers of maturing Treasury security holdings at auction, purchases of Treasury securities, securities lending program, repurchase agreements, and reverse repurchase agreements. 

For further information on these operations, please refer to the following Frequently Asked Questions (FAQs): Treasury Rollovers, Treasury Purchases, Securities Lending, Repurchase Agreements, and Reverse Repurchase Agreements.