Fed funds, the U.S. overnight inter-bank lending rate, opened at 0.18 percent, within the Federal Reserve’s target of zero to 0.25 percent.
Fed funds closed at 0.28 percent on July 3 after trading from 0.14 percent to 0.28 percent and averaging 0.18 percent, according to ICAP Plc, the world’s largest inter-dealer broker.
The central bank will acquire Treasuries maturing from August 2020 to May 2022. The purchases are part of the Fed’s program, which lasts through the end of the year, to replace $267 billion of short-term debt in its portfolio with longer-term Treasuries in an effort to reduce borrowing costs further.
The central bank plans to purchase from $4.5 billion to $5.5 billion of securities today, according to the New York Fed’s website.