Fed funds closed at 0.28 percent yesterday after trading from 0.08 percent to 0.28 percent and averaging 0.14 percent, according to ICAP Plc, the world’s largest inter-dealer broker. ICAP’s monthly average is 0.129 percent.
The central bank will acquire Treasuries maturing from May 2020 to February 2022 today as part of the Fed’s program to replace $400 billion of short-term debt in its portfolio with longer-term Treasuries to limit borrowing costs and counter risks of a recession.
The central bank plans to purchase from $4.50 billion to $5.25 billion of securities today, according to the New York Fed’s website.
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