Agency spreads widen by 1 to 2 bps; Federal Reserve announces purchase of $2.2 billion in debt

By Lisa Kerner

Charlotte, N.C., Sept. 30 - Agency spreads ended the day 1 to 2 basis points wider across the curve driven by selling, according to a trader on Thursday.

Callables continued to do well, and recent economic data pushed the market lower, the trader said.

The Labor Department announced that initial jobless claims fell 16,000 from the prior week to 453,000 for the week ended Saturday.

Personal consumption expenditures increased 2.2% in the second quarter, compared with an increase of 1.9% in the first quarter, according to the Bureau of Economic Analysis.

Also on Thursday, the Federal Reserve purchased $2.2 billion in debt maturing from 2021 to 2040 as part of its bid to reinvest cash from mortgage-backed securities into the bond market.

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