Fed Funds Open at 0.15%, Within Target Range, According to ICAP

Fed funds, the U.S. overnight inter-bank lending rate, opened at 0.15 percent, within the Federal Reserve’s target of zero to 0.25 percent.

Fed funds closed at 0.14 percent yesterday after trading from 0.1 percent to 0.25 percent and averaging 0.13 percent, according to ICAP Plc, the world’s largest inter-dealer broker.

The central bank will acquire $4.5 billion to $5 billion of Treasuries maturing from November 2020 to August 2022. The purchases are part of the Fed’s program to replace $267 billion of short-term debt in its portfolio with longer-term Treasuries in an effort to keep borrowing costs low.