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U.S. Fed buys $28.1 billion of mortgage bonds, sells $5.6 billion - Metro US

U.S. Fed buys $28.1 billion of mortgage bonds, sells $5.6 billion

Federal Reserve Board building on Constitution Avenue is pictured in Washington

NEW YORK, June 11 (Reuters) – The Federal Reserve bought $28.1 billion of agency mortgage-backed securities in the week

from Jun. 4 to Jun. 10, compared with $22.485 billion purchased the previous week, the New York Federal Reserve Bank said on Thursday.

In a move to help the housing market begun in October 2011, the U.S. central bank has been using funds from principal payments

on the agency debt and agency mortgage-backed securities, or MBS, it holds to reinvest in agency MBS.

The New York Fed said on its website the Fed sold $5.6 billion in mortgage securities guaranteed by Fannie Mae <FNMA.OB>,

Freddie Mac <FMCC.OB> or the Government National Mortgage Association, or Ginnie Mae,

in the latest week. It sold none the prior week.

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