Fed funds, the U.S. overnight inter-bank lending rate, is projected to open at 0.12 percent to 0.17 percent, within the Federal Reserve’s target of zero to 0.25 percent.
Fed funds closed at 0.28 percent yesterday after trading from 0.06 percent to 0.28 percent and averaging 0.14 percent, according to ICAP Plc, the world’s largest inter-dealer broker. ICAP’s monthly average is 0.134 percent.
The central bank will sell Treasuries maturing from July 2012 to January 2013 today. 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 reduce borrowing costs further and counter rising risks of a recession.
The central bank plans to sell $8 billion to $8.75 billion of securities today, according to the New York Fed’s website.
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