Fed funds closed at 0.15 percent yesterday after trading from 0.12 percent to 0.28 percent and averaging 0.16 percent, according to ICAP Plc, the world’s largest inter-dealer broker. ICAP’s monthly average is 0.156 percent.
The central bank will acquire $1.5 billion to $2 billion of Treasuries maturing from February 2036 to May 2042. The purchases are part of the Fed’s program to replace $400 billion of short-term debt in its portfolio with longer-term Treasuries in an effort to reduce borrowing costs further and counter rising risks of a recession.
The Federal Reserve Bank of New York will release its monthly schedule for its Treasury purchases and sales as part of the maturity extension program. The announcement is schedule for 2 p.m. New York time.
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