Fed funds closed at 0.28 percent yesterday after trading from 0.1 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 acquire Treasuries maturing from November 2022 to February 2031. The purchases 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 purchase from $1.5 billion to $2 billion of securities today, according to the New York Fed’s website.
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