Dec. 21 (Bloomberg) -- Fed funds, the U.S. overnight inter-bank lending rate, is projected to open at 0.07 percent to 0.1 percent, within the Federal Reserve’s target of zero to 0.25 percent.
Fed funds closed at 0.06 percent yesterday after trading from 0.03 percent to 0.3125 percent and averaging 0.08 percent, according to ICAP Plc, the world’s largest inter-dealer broker. ICAP’s monthly average is 0.074 percent.
The Fed will hold two separate sales of U.S. debt today as part of its plan to replace $400 billion of short-term debt in its portfolio with longer-term Treasuries to reduce borrowing costs further and counter rising risks of a recession
Beginning at 10:15 a.m. New York time, the central bank will sell from $8 billion to $8.75 billion of Treasuries maturing from November 2013 to March 2014.
Starting at 1:15 p.m. and ending at 2 p.m., the Fed will sell Treasuries maturing from June 2013 to November 2013. The central bank will sell from $8 billion to $8.75 billion of Treasuries in this maturity range as well.
To contact the reporter on this story: Liz Capo McCormick in New York at firstname.lastname@example.org
To contact the editor responsible for this story: Dave Liedtka at email@example.com