Fed Funds Projected to Open at 0.06% to 0.1%, ICAP Says
Fed funds closed at 0.1 percent yesterday after trading from 0.07 percent to 0.28 percent and averaging 0.11 percent, according to ICAP Plc, the world’s largest inter-dealer broker. ICAP’s monthly average is 0.11 percent.
The central bank will sell $1 billion to $1.5 billion of Treasury Inflation Protected Securities maturing from July 2012 to January 2015. The sale is 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.
To contact the reporter on this story: Liz Capo McCormick in New York at firstname.lastname@example.org
To contact the editor responsible for this story: Dave Liedtka at email@example.com
Bloomberg reserves the right to edit or remove comments but is under no obligation to do so, or to explain individual moderation decisions.