Fed Funds Open at 0.17%, Within Fed’s Target Range, ICAP Says

Fed funds, the U.S. overnight inter- bank lending rate, opened 0.17 percent, within the Federal Reserve’s target of zero to 0.25 percent.

Fed funds closed at 0.28 percent last night after trading from 0.10 percent to 0.28 percent and averaging 0.17 percent, according to ICAP Plc, the world’s largest inter-dealer broker.

The central bank will sell Treasuries maturing from February 2013 to April 2014. The purchases are part of the Fed’s program to replace short-term debt in its portfolio with longer- term Treasuries in an effort to keep borrowing costs low.

The central bank plans to sell $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 dliedtka@bloomberg.net

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