Fed Funds Projected to Open at 0.13% to 0.17%, ICAP Says
Fed funds closed at 0.3125 percent yesterday after trading from 0.1 percent to 0.3125 percent and averaging 0.19 percent, ICAP Plc, the world’s largest inter-dealer broker, said in an e- mailed statement. ICAP’s monthly average is 0.142 percent.
The Fed will hold two separate operations as part of its plan to replace $400 billion of short-term debt in its portfolio with longer-term Treasuries to reduce borrowing costs further and counter rising risks of a recession.
The central bank will sell $8 billion to $8.75 billion of Treasuries due from July 2013 to January 2014 beginning at 10:15 a.m. New York time. It will purchase $4.25 billion to $5 billion of Treasuries maturing from May 2020 to February 2022, starting at 1:15 p.m.
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