Fed funds closed at 0.28 percent yesterday after trading from 0.07 percent to 0.28 percent and averaging 0.15 percent, according to ICAP Plc, the world’s largest inter-dealer broker.
The central bank will sell Treasuries maturing from February 2013 to February 2014. 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.
The central bank plans to sell from $7 billion to $8 billion of securities today, according to the New York Fed’s website.
To contact the editor responsible for this story: Dave Liedtka at email@example.com