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.
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