Fed Funds Projected to Open at 0.07% to 0.1%, ICAP Says

Fed funds, the U.S. overnight inter- bank lending rate, is projected to open at 0.07 percent to 0.1 percent, within the Federal Reserve’s target of zero to 0.25 percent.

Fed funds closed at 0.04 percent yesterday after trading from 0.04 percent to 0.18 percent and averaging 0.07 percent, according to ICAP Plc, the world’s largest inter-dealer broker. ICAP’s monthly average is 0.073 percent.

The central bank will sell Treasuries maturing from April 2014 to November 2014. The sales 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.

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: Robert Burgess at bburgess@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.