Fed to finance Uncle Sam, dump mortgage securities

ECONOMYNEXT – The Federal Reserve will halt the sell down of government securities, from December 01 and switch agency debt and mortgage-backed securities into Treasuries, the monetary authority said. The Fed had sharply reduced its sell-down of government securities to just 5 billion dollars a month earlier as US Treasuries yields jumped on worsening government finances. In the October 29 monetary policy decision, the Fed said it will halt the reduction of its Treasuries holdings. From December 01, the Fed will reduce agency debt and mortgage-backed securities by 35 billion dollars a month and instead purchase Treasury bills. US 10-year…

Read the full article →