Fed Funds Opened at 0.17%, Within Fed Target Range, ICAP Says

Fed funds, the U.S. overnight inter- bank lending rate, opened at 0.17 percent, within the Federal Reserve’s target range 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 0.16 percent, according to ICAP Plc, the world’s largest inter-dealer broker.

The central bank will sell Treasuries today maturing from April 2014 to February 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.

The central bank plans to sell from $7 billion to $8 billion of the securities today, according to the New York Fed’s website.

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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