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Libor Just Did Something It Hasn't Done In 13 Years

•, by Tyler Durden

... with the 10Y sliding to a 7 week low under 2.74% and telegraphing that unless the Fed manages a parallel shift in the curve, that Powell Fed will create a recession with just 2 more rate hikes as the curve inverts, the action again remains squarely focused on the unsecured dollar funding market, where 3M USD Libor just did something it hasn't done in 13 years. 

At its 8am ET fixing, Libor increased from 2.3080% to 2.3118%, rising for the 37th straight dayand marking the longest consecutive string of advances since a 50-day streak that ended in November 2005Libor is now up a whopping 62 bps since the end of 2017, a move that is far more acute than the shift in either Fed Fund futures or 2Y TSYs.

Additionally, and as shown on this website, the relentless blowout in the Libor-OIS spread continues to signal that conventional funding pathways remain at least partially blocked - for either technical or systemic reasons - even if overnight Libor-OIS narrowed fractionally to 59bp from 59.3bp a day earlier.

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