Operating Policy
Statement Regarding Agency Mortgage-Backed Securities Small Value Exercise
May 4, 2023

The New York Fed undertakes certain small value open market transactions from time to time for the purpose of testing operational readiness to implement existing and potential policy directives from the Federal Open Market Committee (FOMC). The FOMC directs the Desk to conduct these exercises to test its operational readiness in the Authorizations and Continuing Directives for Open Market Operations.

In connection with these authorizations, the Desk intends to conduct three small value agency MBS coupon swap operations on May 10, 2023. On this day, the Desk intends to swap out of unsettled May To-Be-Announced (TBA) positions of 30-year Ginnie Mae 5.0 percent coupons for other readily available MBS. Each operation will have a face value of $5 million, for a total current face value of $15 million across the three operations.

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