U.S. Fed buys $22.7 billion of mortgage bonds, sells none

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FILE PHOTO: Federal Reserve Board building on Constitution Avenue is pictured in Washington, U.S., March 19, 2019. REUTERS/Leah Millis

July 16, 2020

NEW YORK, July 16 (Reuters) – The Federal Reserve bought $22.686 billion of agency mortgage-backed securities in the week from Jul. 9 to Jul. 15, compared with $21.685 billion purchased the previous week, the New York Federal Reserve Bank said on Thursday.

In a move to help the housing market begun in October 2011, the U.S. central bank has been using funds from principal payments

on the agency debt and agency mortgage-backed securities, or MBS, it holds to reinvest in agency MBS.

The New York Fed said on its website the Fed sold no mortgage securities guaranteed by Fannie Mae <FNMA.OB>,

Freddie Mac <FMCC.OB> or the Government National Mortgage Association, or Ginnie Mae, in the latest week. It sold $3.6 billion the prior week.

(New York Treasury Desk +1-646-223-6300)

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