Fed funds closed at 0.05 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 0.075 percent.
The central bank will acquire $2.25 billion to $2.75 billion of Treasuries maturing from February 2036 to November 2041. 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 Fed will also purchase $4.25 billion to $5 billion of notes maturing from February 2020 through November 2021 in a second open-market operation this afternoon.
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