The Treasury Department has sold $35 billion in Fannie Mae and Freddie Mac mortgage-backed securities in the past few months as it wind downs its MBS portfolio.
Treasury is presently on course to sell $10 billion in agency MBS a month.
After Fannie and Freddie were placed in conservatorship in September 2008, Treasury began to purchase agency MBS to help stabilize financial markets and keep mortgage credit flowing.
The department purchased $225 billion and its portfolio peaked in December 2009 at $192 billion.
In March 2011, the Treasury officials said they would begin selling MBS.
Due to runoff and recent sales, Treasury's MBS portfolio has fallen to $95 billion as of June 30, down 50% from the peak at yearend 2009.
"Based on current market conditions, Treasury expects to make a profit for taxpayers on its MBS portfolio," the department said.
