Fed's 2nd unique Auction of Treasury Securities

Fed to Auction More Treasury Securities - washingtonpost.com: "Fed to Auction More Treasury Securities
By JEANNINE AVERSA
The Associated Press Wednesday, April 2, 2008; 4:30 PM

WASHINGTON -- The Federal Reserve announced Wednesday that it will auction an additional $25 billion in super-safe Treasury securities to big investment firms, part of an effort to ease problems in credit markets.

The auction _ the second of its kind _ will be held on Thursday. In exchange for the 28-day loan bidding firms can put up more risky investments, including certain shunned mortgage-backed securities as collateral. At the first auction conducted last week, the Fed loaned $75 billion worth of Treasury securities to investment firms. Demand for the securities, however, was less than analysts expected. Some viewed that as a possible sign of less stress in the financial system..."