Fed Funds Open at 0.08%, Within Target Range, According to ICAP

Fed funds, the U.S. overnight inter-bank lending rate, opened 0.08 percent, within the Federal Reserve’s target of zero to 0.25 percent, ICAP Plc, the world’s largest inter-dealer broker, said in an e-mailed statement.

Fed funds traded from 0.05 percent to 0.3125 percent on June 6, according to data posted on the Federal Reserve Bank of New York’s website. The fed effective, or a volume-weighted average of rates on trades arranged by major brokers, was 0.09 percent.

The central bank will acquire Treasuries $850 million to $1.1 billion of Treasuries maturing from February 2036 to May 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 will 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 editors responsible for this story: Dave Liedtka at dliedtka@bloomberg.net Paul Cox

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