Fed funds closed at 0.18 percent on June 15 after trading from 0.13 percent to 0.2 percent and averaging 0.18 percent, according to ICAP Plc, the world’s largest inter-dealer broker.
The Fed will hold two separate permanent open market operations of U.S. debt today 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.
Beginning at 10:15 a.m. New York time, the central bank will sell Treasuries due from May 2013 to November 2013. The Fed plans to sell $8 billion to $8.75 billion of the securities today, according to the New York Fed’s website. This operation will close at 11 a.m.
Starting at 1:15 p.m. and ending at 2 p.m., the Fed will acquire Treasuries maturing from February 2036 to May 2042. The central bank will purchase from $1.5 billion to $2.25 billion of Treasuries in this maturity range.
To contact the reporter on this story: Liz Capo McCormick in New York at email@example.com
To contact the editor responsible for this story: Dave Liedtka at firstname.lastname@example.org