Business news for Wed, 12 Dec 2007 & with words lines+plans. 4 news.

THE Federal Reserve plans to ease "elevated" short-term funding pressures by injecting cash to banks through auctions and providing US$24 billion in currency swap lines to the European and Swiss central banks. The Fed is coordinating the measures with the European Central Bank, Bank of England, Bank of Canada and Swiss National Bank, the Fed said in a statement in Washington yesterday. The Fed will auction term funds to banks against a "wide variety of collateral." All "generally sound" institutions can participate, the statement said. The central banks are taking the steps after demand for cash sent borrowing costs climbing. The Fed's previous attempts to ease the credit squeeze that began in August have failed to have lasting effects. One gauge watched by central bankers, the three-month dollar London Interbank Offered Rate, rose to 5.15 percent a week ago, the highest in almost two months, Bloomberg News said. "By allowing the Federal

NEW YORK (MarketWatch) - Treasury bonds fell sharply on Wednesday, sending yields higher, after the Federal Reserve announced plans to ease elevated pressures in credit markets. The benchmark 10-year note fell 1 17/32 to 100 23/32, its yield rising to 4.162%. The Fed will inject cash into the markets through auction of short-term funds. The Fed also announced foreign exchange swap lines with the European Central Bank and the Swiss National Bank. The Bank of Canada is also a partner in the liquidity plan. The first auction will be held on Monday Dec. 17.

WASHINGTON (MarketWatch) -- The Federal Reserve announced plans Wednesday to ease elevated pressures in credit markets. The Fed will inject cash into the markets through auction of short-term funds. The Fed also announced foreign exchange swap lines with the European Central Bank and the Swiss National Bank. The Bank of Canada is also a partner in the liquidity plan. The first auction will be held on Monday Dec. 17.

LONDON (MarketWatch) -- European shares swung higher on Wednesday afternoon after the Federal Reserve said that it will inject cash into the markets through an auction of short-term funds. The Fed also announced foreign exchange swap lines with the European Central Bank and the Swiss National Bank. The U.K. FTSE 100 index rose 0.5% at 6,564.30, the German DAX 30 index advanced 1% at 8,083.79 and the French CAC-40 index climbed 0.6% at 5,760.65.