Feb. 3 (Bloomberg) -- Fed funds, the U.S. overnight inter-bank lending rate, is projected to open at 0.06 percent to 0.10 percent, within the Federal Reserve’s target of zero to 0.25 percent.
Fed funds closed at 0.3125 percent yesterday after trading from 0.07 percent to 0.3125 percent and averaging 0.11 percent, according to ICAP Plc, the world’s largest inter-dealer broker. ICAP’s monthly average is 0.083 percent.
The central bank will sell $8 billion to $8.75 billion of Treasuries maturing from May 2012 to November 2012 today. The sales are part of the Fed’s program to replace $400 billion of short-term debt in its portfolio with longer-term Treasuries to reduce borrowing costs further and counter risks of a recession.
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