Fed funds closed at 0.06 percent yesterday after trading from 0.04 percent to 0.15 percent and averaging 0.08 percent, according to ICAP Plc, the world’s largest inter-dealer broker. ICAP’s monthly average is 0.076 percent.
The central bank will sell Treasuries maturing from October 2012 to May 2013. The purchases are part of the Fed’s 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 sell from $8 billion to $8.75 billion of securities today, according to the New York Fed’s website.
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