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UPDATE: Fed Announces It Will Buy Agency Discount Notes Tue 09/23 02:26 PM
By Min Zeng
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--The Federal Reserve of New York said Tuesday it will buy back agency discount notes with maturities ranging from October 2008 to July 2009.
The Fed's outright purchase Tuesday will close at 2:30 p.m. EDT (1830 GMT) and the settlement date is Wednesday.
In such a buyback, the Fed permanently purchases the securities from the market.
This action is part the central banks newly announced initiative to purchase short-term debt issued by Fannie Mae (FNM:$1.28,00$0.49,0062.03%) , Freddie Mac (FRE:$1.30,00$0.4500,52.94%) and the Federal Home Loan Banks in an effort to bring greater liquidity to credit markets.
On Friday, the New York Fed bought $8 billion in its inaugural agency discount note purchase auction.
-By Min Zeng, Dow Jones Newswires; 201-938-2096; [e-mail]
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(END) Dow Jones Newswires
09-23-081426ET
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