Summary Box: Fed launches $600B bond program

By The Associated Press
The Associated Press
Wednesday, November 3, 2010; 6:31 PM

-- FINALLY: The Federal Reserve announced its long-awaited plan to buy $600 billlion in Treasurys to push interest rates lower. The hope is that it ultimately lowers the unemployment rate.

MORE DETAILS: The Fed will buy $75 billion in Treasurys a month until next June. Investors had expected a package in the range of $500 billion over six months.

MARKET REACTION: Treasurys rose, with the exception of the 30-year bond, because the Fed's program mainly targets bonds maturing in the next two to ten years. The price of the 30-year bond plunged $2.00, and its yield jumped to 4.08 percent.

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