Fed funds, the U.S. overnight inter-bank lending rate, opened at 0.07 percent, within the Federal Reserve’s target of zero to 0.25 percent.
Fed funds closed at 0.05 percent yesterday after trading from 0.03 percent to 0.25 percent and averaging 0.06 percent, ICAP Plc, the world’s largest inter-dealer broker, said in an e-mailed statement.
The central bank will acquire $2.25 billion to $2.75 billion of Treasuries maturing from May 2021 to February 2024. The purchases, which are permanent open market operations, are the part of the Fed’s quantitative easing program aimed at keeping long-term rates low.
The Fed may also conduct a test of an overnight fixed-rate reverse repo facility. The temporary open-market operations will use Treasuries as collateral.