WASHINGTON -(Dow Jones)- The U.S. Treasury Department wants to know what primary dealers think of the Federal Reserve's programs to purchase mortgage-backed securities and agency debt.
The Treasury on Friday released its quarterly survey of primary dealers, conducted in advance of its announcement of the government's estimated financing needs for the first quarter of 2010.
The survey asks dealers to discuss the potential impact of the Federal Reserve's purchase programs on fixed-income markets and on financial markets more broadly.
The survey also asks for budget-deficit estimates for fiscal years 2010, 2011 and 2012 as well as for suggestions on adjustments to the government's debt-issuance practices.
Noting that the Treasury Market Practices Group has had a fails charge in place for nine months, the Treasury asked dealers for their opinions on the impact of that charge on repo and cash market functioning. A fails charge is imposed when dealers in the repo market do not return securities to other market participants on time.
An administration source said instances where fails occur have come down significantly since the charges started.
Treasury is planning to meet with primary dealers next week.
Copyright 2009 Dow Jones Newswires
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