Fed Funds Projected to Open at 0.06% to 0.09%, ICAP Says
Fed funds closed at 0.3125 percent yesterday after trading from 0.06 percent to 0.3125 percent and averaging 0.1 percent, according to ICAP Plc, the world’s largest inter-dealer broker. ICAP’s monthly average is 0.08 percent.
The central bank will acquire as much as $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 release its monthly schedule for its Treasury purchases and sales as part the maturity extension program. The announcement is schedule for 2 p.m. New York time.
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