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coupon pass

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Financial Dictionary

Coupon Pass

The purchase of treasury notes or bonds from dealers, by the Federal Reserve.

Investopedia Commentary

The "coupon" refers to the coupons which are the main difference between T-notes and T-bills. The "pass" comes from when the Federal Reserve buys T-bills from dealers thus passing the bill.

Related Links

Money Market Tutorial
The Federal Reserve (the Fed) Tutorial

See also: Coupon, Treasury Bill, Treasury Bond, Treasury Note

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