Fed funds closed at 0.12 percent yesterday after trading from 0.12 percent to 0.15 percent and averaging 0.15 percent, according to ICAP Plc, the world’s largest inter-dealer broker.
The central bank will acquire Treasuries maturing from August 2022 to February 2031 today under 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 purchase from $1.75 billion to $2.25 billion of securities today, according to the New York Fed’s website.
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