Fed makes biggest agency debt purchase to date

The US Federal Reserve bought $5.15 billion of Fannie Mae, Freddie Mac and the Federal Home Loan Banks debt on Monday, the New York Federal Reserve said, in its biggest purchase of agency debt to date. Dealers submitted $7.93 billion for consideration in the Feds purchase of debt maturing between April 2010 and March 2011.
The Fed has so far bought roughly $60 billion of agency notes, of the up to $200 billion it said it would purchase by the end of the year as part of efforts to lower borrowing costs.