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