Fed buys $5.19 billion in bonds; Treasurys turn down
The Federal Reserve Bank of New York purchased $5.19 billion in Treasury debt maturing from 2016 to 2020 on Monday, part of officials' pledge to reinvest cash from maturing mortgage-backed securities and housing agency debt back into the bond market to support the economic recovery. Dealers offered to sell the Fed $24.056 billion in debt. Analysts at primary dealers expected the Fed to buy between $4 billion and $5 billion. After the results, the broader bond market gave up small earlier gains, turning yields higher.