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 0.13 percent yesterday after trading from 0.1 percent to 0.15 percent and averaging 0.12 percent, ICAP Plc, the world’s largest inter-dealer broker, said in an e-mailed statement. ICAP’s monthly average is 0.13 percent.
The Federal Reserve Bank of New York will release its monthly schedule for its Treasury purchases and sales as part of the maturity extension program at 2 p.m. New York time. The purchases are part of the Fed’s program to replace $400 billion of short-term debt in its portfolio with longer-term Treasuries in an effort to reduce borrowing costs further.