April 10 (Bloomberg) -- The Federal Reserve began purchasing Treasuries as part of its program to replace $400 billion of short-term debt in its portfolio with longer-term Treasuries to limit borrowing costs.
The central bank listed $4.25 billion to $5 billion of securities maturing from April 2018 to February 2020 for possible purchase between 1:15 p.m. and 2 p.m. New York time. It purchased $1.843 billion of notes due from February 2036 to May 2041 earlier today.
The Fed is purchasing longer-maturity Treasuries and selling a similar amount of shorter-term debt under a monetary stimulus plan that’s become known as Operation Twist.
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