Dec. 6 (Bloomberg) -- Fed funds, the U.S. overnight inter-bank lending rate, is projected to open at 0.16 percent to 0.18 percent, within the Federal Reserve’s target of zero to 0.25 percent.
Fed funds closed at 0.15 percent yesterday after trading from 0.07 percent to 0.25 percent and averaging 0.16 percent, according to ICAP Plc, the world’s largest inter-dealer broker.
The central bank will acquire Treasuries through two open market operations today as part of its plan to replace short-term debt in its portfolio with longer-term Treasuries in an effort to keep borrowing costs low.
The Fed will acquire $1.5 billion to $2.25 billion of debt maturing February 2036 through November 2042 and $4.25 billion to $5.25 billion of securities due December 2018 through November 2020, according to the New York Fed’s website.
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