Bloomberg News

Fed Funds Projected to Open at 0.16% to 0.18%, ICAP Says

December 03, 2012

Fed funds, the U.S. overnight inter- bank lending rate, is projected to open in a range of 0.16 percent to 0.18 percent, within the Federal Reserve’s target of zero to 0.25 percent.

Fed funds closed at 0.1 percent on Nov. 30 after trading from 0.1 percent to 0.24 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 sell Treasuries maturing from December 2015 to January 2016. The sales are the first in the Fed’s new program to replace short-term debt in its portfolio with longer-term Treasuries in an effort to reduce borrowing costs.

The central bank plans to sell from $7 billion to $8 billion of securities today, according to the New York Fed’s website.

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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