Agency Buyback

March 31st, 2009 11:22 am | by John Jansen |

The Federal Reserve announced the result of its agency buyback and it bought $3.2 billion of agency debt in 2015 through 2017 as well as paper in the 20 year sector.The preponderance of the purchases were in the 2015 through 2017 sector as only $ 39 million was from the 20 year sector.

The street showed the Fed $ 7.4 billion and that means the Desk bought less than half of what was offered.

One small surprise. The Freddie 4 7/8 June 2018 was the benchmark 10 year for a very long time. A new issue just replaced it and consequently it is surprising that there was not a bigger chunk of that shown to the Fed for purchase. They bought only $ 99 million of that issue.

Spreads improved yesterday and are little changed today.

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