Fed funds closed at 0.15 percent on June 8 after trading from 0.14 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 0.163 percent.
The central bank will sell Treasury Inflation Protected Securities maturing from April 2013 to April 2015. 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 central bank plans to sell from $1 billion to $1.5 billion of securities today, according to the New York Fed’s website.
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