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Fed Funds Open at 0.07%, Within Target Range, According to ICAP

Fed funds, the U.S. overnight inter-bank lending rate, opened at 0.07 percent, within the Federal Reserve’s target range of zero to 0.25 percent.

Fed funds closed at 0.28 percent on Jan. 17 after trading from 0.03 percent to 0.28 percent and averaging 0.05 percent, ICAP Plc, the world’s largest inter-dealer broker, said in an e-mailed statement.

The central bank will acquire $1 billion to $1.5 billion of Treasuries maturing from February 2036 to November 2043. The purchases, which are permanent open market operations, are the part of the Fed’s quantitative easing program aimed at keeping long-term rates low.

The Fed may also conduct a test of an overnight fixed-rate reverse repo facility. The temporary open-market operations will use Treasuries as collateral.

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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