Bloomberg News

Fed Funds Open at 0.17%, Within Target Range, ICAP Says

July 09, 2012

Fed funds, the U.S. overnight inter- bank lending rate, opened at 0.17 percent, within the Federal Reserve’s target of zero to 0.25 percent.

Fed funds closed at 0.1 percent on July 6 after trading from 0.1 percent to 0.21 percent and averaging 0.17 percent, ICAP Plc, the world’s largest inter-dealer broker, said in an e- mailed statement.

The central bank will acquire $1.5 billion to $2 billion of Treasuries maturing from February 2036 to May 2042. The purchases are the 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.

To contact the reporter on this story: Liz Capo McCormick in New York at emccormick7@bloomberg.net

To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net


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