Fed Funds Open at 0.07%, Within Target Range, According to ICAP
Fed funds, the U.S. overnight inter-bank lending rate, opened 0.07 percent, within the Federal Reserve’s target of zero to 0.25 percent, ICAP Plc, the world’s largest inter-dealer broker, said in an e-mailed statement.
Fed funds traded from 0.05 percent to 0.3125 percent yesterday, according to data posted on the Federal Reserve Bank of New York’s website. The fed effective, or a volume-weighted average of rates on trades arranged by major brokers, was 0.09 percent.
The central bank will acquire Treasuries $350 million to $600 million of Treasuries maturing from November 2024 to February 2031. 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 will also conduct a test of an overnight fixed-rate reverse repo facility. The temporary open-market operations will use Treasuries as collateral.
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