The Federal Reserve Bank of New York posts "FAQs: Maturity Extension Program". It asks and explains, "Why is the Desk purchasing longer-dated Treasury securities and selling shorter-dated Treasury securities On September 21, 2011, the Federal Open Market Committee (FOMC) directed the Open Market Trading Desk at the Federal Reserve Bank of New York (the Desk) to purchase, by the end of June 2012, $400 billion in par value of Treasury securities with remaining maturities of 6 years to 30 years and to sell, over the same period, an equal par value of Treasury securities with remaining maturities of 3 years or less. This policy step should put downward pressure on long-term interest rates and help make financial conditions more accommodative. In doing so, this action will support a stronger economic recovery and help ensure that inflation over time is at levels consistent with the Federal Reserve's mandate to foster maximum employment and price stability.... Additional information on the effects of the program can be found at http://www.federalreserve.gov/monetarypolicy/maturityextensionprogram.htm.... What Treasury securities will the Desk sell? The Desk will sell nominal Treasury securities and TIPS that, as of the date of each sale operation, have remaining maturities of 3 months to 3 years. Securities with less than 3 months to maturity as of the date of a sale operation will not be sold in order to provide markets with greater certainty about the maturity profile of the SOMA's Treasury holdings."
