Fed Funds Projected to Open at 0.07% to 0.1%, ICAP Says
Fed funds closed at 0.06 percent yesterday after trading from 0.03 percent to 0.3125 percent and averaging 0.08 percent, according to ICAP Plc, the world’s largest inter-dealer broker. ICAP’s monthly average is 0.074 percent.
The Fed will hold two separate sales of U.S. debt today as part of its plan to replace $400 billion of short-term debt in its portfolio with longer-term Treasuries to reduce borrowing costs further and counter rising risks of a recession
Beginning at 10:15 a.m. New York time, the central bank will sell from $8 billion to $8.75 billion of Treasuries maturing from November 2013 to March 2014.
Starting at 1:15 p.m. and ending at 2 p.m., the Fed will sell Treasuries maturing from June 2013 to November 2013. The central bank will sell from $8 billion to $8.75 billion of Treasuries in this maturity range as well.
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