Fed Funds Open at 0.17%, Within Fed’s 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 of zero to 0.25 percent.

Fed funds closed at 0.1 percent yesterday after trading from 0.09 percent to 0.21 percent and averaging 0.15 percent, according to ICAP Plc, the world’s largest inter-dealer broker.

The central bank plans to buy $1.75 billion to $2.25 billion of securities maturing from February 2036 to November 2042 today, according to the New York Fed’s website. 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.

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: David Liedtka at dliedtka@bloomberg.net

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