Dec. 6 (Bloomberg) -- Fed funds, the U.S. overnight inter-bank lending rate, is projected to open in a range of 0.21 percent to 0.23 percent, within the Federal Reserve’s target of zero to 0.25 percent.
Fed funds closed at 0.15 percent on Dec. 3 after trading from 0.10 percent to 0.24 percent and averaging 0.17 percent, ICAP Plc, the world’s largest inter-dealer broker, said in an e-mailed statement. ICAP’s monthly average is 0.195 percent.
The central bank will acquire Treasury notes due from August 2028 to November 2040 today as part of its plan to purchase $600 billion more Treasuries through June and reinvest its maturing mortgage holdings. The Fed expects to reinvest $250 billion to $300 billion of proceeds from mortgage-backed debt and agency securities into Treasuries during that time.
The central bank plans to purchase $1.5 billion to $2.5 billion of securities today, according to the New York Fed’s website.
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