1  1  For example, in August 2010 we announced our policy of reinvesting principal payments on agency debt and agency-guaranteed mortgage-backed securities in longer-term Treasury securities and signaled that we were considering additional purchases of longer-term Treasury securities.
Since then, equity prices have risen significantly, volatility in the equity market has fallen, corporate bond spreads have narrowed, and inflation compensation as measured in the market for inflation-indexed securities has risen from low to more normal levels.