(Bloomberg) -- Fed funds, the U.S. overnight inter-bank lending rate, opened at 0.13 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 0.06 percent to 0.32 percent yesterday, 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 0.12 percent.
The Fed will conduct a test of an overnight fixed-rate reverse-repo facility. The temporary open-market operations will use Treasuries as collateral. The fixed-rate on the reverse repos, for transactions that total at or below the $300 billion aggregate limit, will be at a 0.05 percent today.
To contact the reporter on this story: Liz Capo McCormick in New York at firstname.lastname@example.org
To contact the editors responsible for this story: Dave Liedtka at email@example.com Greg Storey