by Bill McBride on 10/21/2008 09:37:00 AM
Tuesday, October 21, 2008
From the WSJ: Libor's Move Downward Continues
According to data from the British Bankers' Association, three-month U.S. dollar Libor dropped to 3.83375%, the lowest since September 26, from Monday's fixing of 4.05875%. The rate has shed nearly 100 basis points since peaking at 4.81875% on October 10.The TED spread has dropped to 2.61 this morning. This is still above the peaks of the previous waves of the credit crisis: in August 2007 the TED spread peaked at around 2.4, in Dec 2007 at about 2.2, and in March of 2008 at just over 2.0. There is still a long way to go.
The one-month rate fell to 3.5275% Tuesday from Monday's 3.75125%.
The three-month BOR/OIS spread narrowed to 271.4 basis points from around 293 basis points Monday as tensions eased.
Also this just shows some loosening in the credit markets - an important step - but the economic data in general suggests the U.S. recession is still getting worse.
Posted by Bill McBride on 10/21/2008 09:37:00 AM