Investopedia

Coupon Pass

Dictionary Says

Definition of 'Coupon Pass'

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

Investopedia explains 'Coupon Pass'

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.

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