Fed funds, the U.S. overnight inter-bank lending rate, is projected to open in a range of 0.12 percent to 0.17 percent, within the Federal Reserve’s target of zero to 0.25 percent.
Fed funds closed at 0.15 percent on April 6 after trading from 0.08 percent to 0.15 percent and averaging 0.11 percent, ICAP Plc, the world’s largest inter-dealer broker, said in an e-mailed statement. ICAP’s monthly average is 0.138 percent.
The central bank will sell as much as $1.5 billion of Treasury Inflation Protected Securities maturing from July 2012 to January 2015. The operation is part of the Fed’s program to replace $400 billion of short-term debt in its portfolio with longer-term Treasuries to keep long-term borrowing costs low.
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