Journal Article

A History of Large-Scale Asset Purchases before the Federal Reserve


Abstract: The authors find that between 1870 and 1913, large open market purchases of Treasury securities made by the U.S. Treasury Department narrowed the yield spread between Treasury bonds with high interest rate risk (the risk of an investment?s value changing on account of interest rate changes) and those with low interest rate risk.

Keywords: Federal Reserve; bonds; debts;

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Bibliographic Information

Provider: Federal Reserve Bank of Chicago

Part of Series: Economic Perspectives

Publication Date: 2013

Issue: Q IV

Pages: 140-152