Fed funds closed at 0.10 percent yesterday after trading from 0.10 percent to 0.16 percent and averaging 0.14 percent, according to ICAP Plc, the world’s largest inter-dealer broker. ICAP’s monthly average is 0.136 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.
The central bank plans to buy $4.25 billion to $5 billion of securities today, according to the New York Fed’s website.
To contact the reporter on this story: Liz Capo McCormick in New York at firstname.lastname@example.org