Fed funds closed at 0.3125 percent yesterday after trading from 0.07 percent to 0.3125 percent and averaging 0.11 percent, according to ICAP Plc, the world’s largest inter-dealer broker. ICAP’s monthly average is 0.083 percent.
The central bank will sell $8 billion to $8.75 billion of Treasuries maturing from May 2012 to November 2012 today. The sales are part of the Fed’s program to replace $400 billion of short-term debt in its portfolio with longer-term Treasuries to reduce borrowing costs further and counter risks of a recession.
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