Bank of America and others are selling their debts

Latest reports reveal that the fourth major U.S. bank to take advantage of a government guarantee Bank of America gained $9 billion in the bond market on Monday this week. Thus the total amount of bonds that fall under the Federal Deposit Insurance Corp's Liquidity Guarantee program make up $26.25 billion. A large offering will also be sold by Citigroup and Wells Fargo.

In view of its government guarantee the bank debt was purchased by U.S. and overseas money managers, banks, insurance companies, foreign central banks and others. The government expects the temporary program to cause a positive impulse to depressed credit markets with lending to be opened to consumers and companies who desperately search for financing.

The debt under the program can be issued by the banks within the following six month period. The guarantee is effective until the end of June 2012. Bank of America's bonds included $6.75 billion of 3.5-year fixed-rate notes, $ 1 billion of two-year floating-rate notes, $750 million of three-year floating- rate notes and an additional $500 million of three-year floating-rate notes.