2012.05.07 14:12:09 Fed Call: Fed To Buy Treasurys For 'Twist' Monday

NEW YORK (Dow Jones)--The Federal Reserve is scheduled to buy Treasury securities Monday for its stimulus plan that extends the average maturity of the U.S. government debt sitting on its balance sheet. The central bank plans to purchase $1.5 billion to $2.0 billion in long-dated notes due between February 2036 and February 2042. These results will be released around 11 am ET, leaving 12 buyback operations left this month. In total, the so-called Operation Twist accommodation effort will have the Fed exchange $400 billion of its short-term Treasury securities for longer-dated ones. This month, the central bank will purchase $45 billion worth of U.S. government debt through 15 operations and sell about $43 billion via six sales. These purchases will keep the Fed's balance sheet size steady. By purchasing longer-term Treasurys, the Fed hopes to push long-term borrowing costs lower for consumers and businesses to facilitate the economic recovery. The Fed funds rate was last at 0.165%, within the central bank's 0%-0.25% target range. -By Cynthia Lin, Dow Jones Newswires; 212-416-4403; cynthia.lin@dowjones.com (END) Dow Jones Newswires May 07, 2012 08:12 ET (12:12 GMT)