Fed Funds Projected to Open at 0.16% to 0.18%, ICAP Says
Fed funds closed at 0.15 percent yesterday after trading from 0.14 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.
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