http://www.businessweek.com/news/2012-03-01/fed-funds-projected-to-open-at-0-dot-10-percent-to-0-dot-14-percent-icap-says

Bloomberg News

Fed Funds Projected to Open at 0.10% to 0.14%, ICAP Says

March 01, 2012

Fed funds, the U.S. overnight inter- bank lending rate, is projected to open at 0.10 percent to 0.14 percent, within the Federal Reserve’s target of zero to 0.25 percent.

Fed funds closed at 0.05 percent yesterday after trading from 0.05 percent to 0.15 percent and averaging 0.10 percent, according to ICAP Plc, the world’s largest inter-dealer broker. ICAP’s monthly average is 0.104 percent.

The central bank will sell Treasuries maturing from June 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 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.

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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