The Federal Reserve began selling as much of $9 billion of Treasuries as part of its program to replace $400 billion of short-term debt in its portfolio with longer-term Treasuries in an effort to reduce borrowing costs.
The central bank is offering securities maturing from March 2013 to October 2013 for sale between 10:15 a.m. and 11 a.m. New York time, according to a Federal Reserve Bank of New York statement today.
The Fed will purchase $44 billion of longer-maturity Treasuries and sell the same amount of shorter-term debt in October under a monetary stimulus plan that’s become known as Operation Twist.
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