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Fed Conducting Second Sale of Treasuries Under Extension Plan

The Federal Reserve began selling Treasuries for a second time today 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 Federal Reserve Bank of New York listed the securities it is considering for sale during the operation on its website.

The central bank sold $8.531 billion of securities maturing in February 2012 through July 2012 earlier today.

To contact the reporter on this story: Liz Capo McCormick in New York at emccormick7@bloomberg.net

To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net

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