Fed funds closed at 0.07 percent yesterday after trading from 0.07 percent to 0.25 percent and averaging 0.08 percent, ICAP Plc, the world’s largest inter-dealer broker, said in an e-mailed statement.
The central bank will acquire Treasuries $900 million to $1.15 billion of Treasuries maturing from February 2036 to February 2044. 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.