Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Fed Funds Projected to Open at 0.16% to 0.18%, ICAP Says

Dec. 13 (Bloomberg) -- Fed funds, the U.S. overnight inter-bank lending rate, is projected to open between 0.16 percent and 0.18 percent, within the Federal Reserve’s target range of zero to 0.25 percent.

Fed funds closed at 0.15 percent yesterday after trading from 0.14 percent to 0.18 percent and averaging 0.17 percent, ICAP Plc, the world’s largest inter-dealer broker, said in an e-mailed statement.

The Fed will hold two separate operations as part of its plan to replace short-term debt in its portfolio with longer-term Treasuries to reduce borrowing costs further and counter rising risks of a recession.

Beginning at 10:15 a.m. New York time, the central bank will buy Treasuries due from February 2021 to November 2022. The Fed plans to purchase $4.25 billion to $5.25 billion of securities today, according to the New York Fed’s website. This operation will close at 11 a.m.

Starting at 1:15 p.m. and ending at 2 p.m., the Fed will sell Treasuries maturing from April 2015 to May 2015. The central bank will sell from $7 billion to $8 billion of Treasuries in this maturity range.

To contact the reporter on this story: Liz Capo McCormick in New York at emccormick7@bloomberg.net

To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.