Dealers say no thanks

Dealers decided they did not need the Fed's Treasuries, bidding to swap for just $59.5 billion of the $75 billion that were offered to dealers, which can obtain the Treasuries in exchange for agency securities and certain mortgage-backed collateral, including so-called private-label securities (non-agencies). This means that dealers are not having difficulty liquefying their assets (relatively speaking) and need not turn to the Fed for liquidity.