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 email@example.com