Credit Opening

September 30th, 2008 7:16 am | by John Jansen |

Overnight Libor is opening sharply higher at 6.88 percent versus 2.57 percent. That reflects the pressures generated by the quarter end balance sheet date. However, the pressure is not confined to the overnight date as Libor rates are higher by 13 basis points to 30 basis points across the money market curve. One month rates are up 21 basis and three month rates have jumped 17 basis points.

The IG 10 has opened at 171 which is 11 tighter than the soggy close of yesterday.

Be Sociable, Share!
  1. One Response to “Credit Opening”

  2. By M on Sep 30, 2008 | Reply

    The o/n libor is not the full story as well. The ECB auction of 30 billion USD was set at 11%. 11%! Some people must be really, really in need of USD. As my colleague mentioned, it is basically a bank run of the banks by the banks.
    Through the Eur/USD forwards banks were paying the equivalent of 30 % overnight to get USD in. Not many can last long with that type of rates having to be paid to fund the organisation.

Post a Comment