imageEconomic Indicators5 hours ago (Mar 13, 2020 11:16AM ET)

(Reuters) – The Federal Reserve on Friday launched a wave of $37 billion of Treasury security purchases under the enhanced market liquidity measures it announced on Thursday to address volatile conditions in the government bond market caused by the coronavirus outbreak.

The Federal Reserve Bank of New York, the market agent for the Fed system, said purchases began at 1030 EDT (1430 GMT) and would continue into the afternoon as it targeted five different maturity sectors.

The purchases account for roughly half of $80 billion in planned monthly purchases that the Fed revised this week to include a wider range of maturities. That was a notable shift from the central bank’s previous approach, which focused on short-term Treasury bills and was described as a “technical” program aimed at boosting the level of reserves in the banking system.

The accelerated purchases are “intended to address highly unusual disruptions in the market for Treasury securities associated with the coronavirus outbreak,” the New York Fed said Friday.

The markets desk will adjust future purchases “as needed to foster smooth Treasury market functioning” and plans to post a revised schedule, the bank said.

Fed starts bond purchases under ramped up liquidity program

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.