Fed
Written on May 3, 2008
The Federal Reserve has auctioned $24.12 billion in super-safe Treasury securities to big investment firms, part of an ongoing effort to ease credit problems.
The auction - the sixth of its kind - was held Thursday and fetched bids slightly less than the $25 billion being made available. That small reduction could suggest that demand for Treasurys may be moderating a bit. That might be viewed as a sign of some improvement in credit conditions.
In exchange for the 28-day loan of Treasury securities, bidding firms can put up more risky investments, including certain shunned mortgage-backed securities, as collateral faxless payday advance. Bidders’ identities are not made public.
The program began on March 27.
Filed in: money.