As a sign that the credit crisis has eased significantly for the time being, Overnight Libor has dropped to its lowest levels in years to 0.73125%. After spiking to 6.43% at a time when the Fed Funds Rate was at 2% on September 16th, and then spiking to 5.09% again on October 9th, O/N Libor is now below the 1% Fed Funds Rate. Let's hope it stays that way!
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Paul something is fishy here,i just looked at the TED spread 2.84 , so .73 libor ?
Posted by: dj | October 30, 2008 at 11:41 PM
TED refers to the 3 months spread
Posted by: lore | October 31, 2008 at 06:45 AM
Well just i just looked at the $libor at the open and it's 2.83
Posted by: dj | October 31, 2008 at 09:37 AM