by Calculated Risk on 10/07/2008 08:29:00 AM

From Bloomberg: Libor for Overnight Dollar Loans Jumps as Credit Freeze Deepens

The London interbank offered rate, or Libor, that banks charge each other for such loans rose 157 basis points to 3.94 percent today, the British Bankers' Association said. The corresponding rate for euros climbed 22 basis points to 4.27 percent, the highest in four days. The Tokyo interbank rate stayed at the highest level this year and the Libor-OIS spread, a gauge of cash scarcity among banks, widened to a record.

However the TED spread, difference between the LIBOR interest rate and the three month T-bill, has declined slightly to 3.69.

Also, Dow Jones is reporting that the commercial paper (CP) market "dislocation worsens" as CP rates continue to rise.