Fed Funds Projected to Open at 0.14% to 0.18%, ICAP Says

Fed funds, the U.S. overnight inter- bank lending rate, is projected to open at 0.14 percent to 0.18 percent, within the Federal Reserve’s target of zero to 0.25 percent.

Fed funds closed at 0.28 percent yesterday after trading from 0.1 percent to 0.28 percent and averaging 0.13 percent, according to ICAP Plc, the world’s largest inter-dealer broker.

The central bank will sell $7 billion to $8 billion of Treasuries maturing from May 2015 to November 2015. The sales are part of the Fed’s program to replace $267 billion of short- term debt in its portfolio with longer-term Treasuries in an effort to keep borrowing costs low.

To contact the reporter on this story: Liz Capo McCormick in New York at emccormick7@bloomberg.net

To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net

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