Fed Funds Opens at 0.07%, ICAP Says, Within Central Bank’s Range

Fed funds, the U.S. overnight inter-bank lending rate, opened at 0.07 percent, within the Federal Reserve’s target of zero to 0.25 percent.

Fed funds closed at 0.05 percent on Nov. 10 after trading from 0.05 percent to 0.16 percent, ICAP Plc, the world’s largest inter-dealer broker, said in an e-mailed statement.

The central bank will acquire Treasuries maturing from February 2036 to August 2041. The purchases are the first in the Fed’s new program to replace $400 billion of short-term debt in its portfolio with longer-term Treasuries in an effort to reduce borrowing costs further and counter rising risks of a recession.

The central bank plans to purchase from $2.25 billion to $2.75 billion of securities today, according to the New York Fed’s website.

To contact the reporter on this story: Liz Capo McCormick in New York at emccormick7@bloomberg.net

To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net

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