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August 11, 2010 Wednesday 3:11 PM EST
LENGTH: 125 words
HEADLINE: Fed to buy $18 billion in Treasurys in next month
BYLINE: Deborah Levine
NEW YORK (MarketWatch) — The Federal Reserve Bank of New York announced Wednesday it will buy about $18 billion in Treasury securities in nine operations through Sept. 13, elaborating on policy makers’ statement Tuesday that it would reinvest cash from maturing mortgage-backed securities and housing agency debt back into the bond market to support the economic recovery. Each operation will be for a specific range of maturities, the shortest being debt maturing in 2011 and the longest being 2040 bonds. The goal is to avoid shrinking the Fed’s balance sheet, which would effectively be a tightening of monetary policy.
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