The Open Market Trading Desk (the Desk) at the Federal Reserve Bank of New York undertakes small value open market transactions for the purpose of testing operational readiness to implement existing and potential policy directives from the Federal Open Market Committee (FOMC). The FOMC authorizes the Desk to conduct these exercises 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 dollar roll operations on March 6, 2025 and three small value agency MBS coupon swap operations on March 12, 2025.
On March 6, the Desk will sell the roll: the Desk intends to sell unsettled March To-Be-Announced (TBA) positions and to subsequently buy April TBA positions. The Desk will roll the following security: 15-year UMBS 5.0 percent coupon. Each dollar roll operation will have a face value of $5 million, for a total current face value of $15 million across the three operations.
On March 12, the Desk intends to swap out of unsettled March TBA positions of 30-year Ginnie Mae 5.5 percent coupons for other readily available MBS. Each coupon swap operation will have a face value of $5 million, for a total current face value of $15 million across the three operations.
