Fed funds closed at 0.05 percent yesterday after trading from 0.05 percent to 0.15 percent and averaging 0.10 percent, according to ICAP Plc, the world’s largest inter-dealer broker. ICAP’s monthly average is 0.104 percent.
The central bank will sell Treasuries maturing from June 2012 to January 2013 today. The operation is 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.
The central bank plans to sell $8 billion to $8.75 billion of securities today, according to the New York Fed’s website.
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