NY Fed Treasury Purchases 1 to 2.5 yrs

It tracks outright purchases and sales by the Trading Desk in United States Treasuries with 1 to 2.5 years left. The Desk acts for the System Open Market Account under the Federal Open Market Committee. It trades only nominal fixed-rate notes and bonds with primary dealers. It is a census of United States secondary-market trades, not a survey, and excludes new issuance, holdings, yields, Treasury buybacks, and agency debt.

Operations are irregular and occur only when scheduled, with a tentative schedule around the 9th business day for each mid-month to mid-month period. Each operation is announced at start and results follow the close, showing date, time, settlement, type, sector, maturity range, cap, submitted par, and accepted par. Auctions run 10:10 to 10:30 a.m. Eastern Time and settle one business day later (T+1) through the Fedwire Securities System.

Price detail follows at mid-month, counterparty names follow after two years under the Dodd-Frank Act, and holdings appear weekly in H.4.1. Some monthly periods have no operations, this sector is often skipped, sales occur, and results are final as posted.

This slice has one component scene, with auction fields shaping each reading.

• Nominal 1 to 2.5 year coupons: fixed-rate Treasury notes and bonds with 1 to 2.5 years left, with each auction setting a maturity-date range.
• Maximum operation size: a par cap for each event, not a target, where accepted total cannot exceed the maximum.
• Submitted and accepted par: submitted par shows dealer appetite, while accepted par is the purchases or sales figure and equals the sum across securities.
• Per-security pricing detail: weighted-average accepted price, least favourable accepted price, and partial allocation share, published at mid-month.
• Excluded securities: scarce repo collateral, paper with four weeks or less left, when-issued, cheapest to deliver, on-the-runs; bills and indexed and floating notes elsewhere.

On 9 January 2025 the Desk bought 25 million of 544 million submitted, filling about 4.6% to the cap. It took 5 million of Treasury 3.625% at 99.207 and 20 million of Treasury 2.125% at 97.168, with 80% filled at the least favourable price. The cap was a ceiling, not buying, heavy offers showed an auction outcome, and a 25 million buy was routine, not policy. By contrast, on 12 November 2024 the same sector hosted a sale, with 75 million accepted of 941 million submitted.

1. Cap: The Desk announces a maximum par size, eligible maturity-date range, and excluded issues. Accepted total cannot exceed the maximum. There is no index formula, no weighting, and no seasonal adjustment.
2. Bids: Primary dealers submit price bids in FedTrade Plus, with minimum, size, and increment each 1 million and up to 9 bids per security.
3. Ranking: The Desk ranks bids by closeness to market prices plus proprietary model value, under a 70% of outstanding ceiling and 35% ladder limits.
4. Awards: Awards are multiple-price, meaning each winner pays its own bid, and settle 1 business day later via the Fedwire Securities System.
5. Headline: Total accepted par equals the sum of accepted par per security, with submitted par and average and weakest accepted prices shown. Example: 25 million accepted from 544 million submitted gives a 4.6% fill rate.