Fed funds, the U.S. overnight inter- bank lending rate, opened at 0.18 percent, within the Federal Reserve’s target of zero to 0.25 percent.
Fed funds closed at 0.17 percent yesterday after trading from 0.16 percent to 0.2 percent and averaging 0.18 percent, according to ICAP Plc, the world’s largest inter-dealer broker.
The central bank will sell $7 billion to $8 billion of Treasuries maturing from January 2013 to June 2013. The sales are part of the Fed’s program, which lasts through the end of the year, to replace $267 billion of short-term debt in its portfolio with longer-term Treasuries in an effort to reduce borrowing costs.
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