April 18 (Bloomberg) -- Fed funds, the U.S. overnight inter-bank lending rate, is projected to open between 0.13 percent and 0.17 percent, within the Federal Reserve’s target range of zero to 0.25 percent.
Fed funds closed at 0.3125 percent yesterday after trading from 0.1 percent to 0.3125 percent and averaging 0.19 percent, ICAP Plc, the world’s largest inter-dealer broker, said in an e-mailed statement. ICAP’s monthly average is 0.142 percent.
The Fed will hold two separate operations 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.
The central bank will sell $8 billion to $8.75 billion of Treasuries due from July 2013 to January 2014 beginning at 10:15 a.m. New York time. It will purchase $4.25 billion to $5 billion of Treasuries maturing from May 2020 to February 2022, starting at 1:15 p.m.
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