The Federal Reserve is expected to add a selected group of dealers to help with Treasury debt sales and the central bank’s monetary-policy operations, The Wall StreetJournal reports. The Treasury department will sell over $1 trillion in net government bond sales for fiscal year 2011 to fund the budget deficit.
The U.S. government bond market currently has 18 primary dealers including GoldmanSachs, Barclays, HSBC, Morgan Stanley, JP Morgan and BNP Paribas. Banks which have applied to join the pool over the past year include Societe Generale, ScotiaCapital, Bank of Nova Scotia’s investment banking unit and MF Global.
Click here for the story from The Wall Street Journal.