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[kaiser soze]

Eurodollars are down 0.08% meaning LIBOR is up by roughly 1.5%.
IRX (3 month treasury bill yield) is down 12 %

The TED spread (difference between the above two) has widened a lot today indicating a continued flight to quality.

Perhaps thats why the financials are weak and holding the broader averages down.

JPY is down 0.88% BTW.

Edited by kaiser soze, 29 August 2007 - 12:32 PM.

[kaiser soze]

Eurodollars are down 0.08% meaning LIBOR is up by roughly 1.5%.
IRX (3 month treasury bill yield) is down 12 %

The TED spread (difference between the above two) has widened a lot today indicating a continued flight to quality.

Perhaps thats why the financials are weak and holding the broader averages down.

JPY is down 0.88% BTW.

TED spread widened again today. IRX down 8% again. LIBOR up.

UPDATE 1-Higher interbank rates show persistent market stress
Thu Aug 30, 2007 1:11 PM BST
Email This Article | Print This Article | RSS [-] Text [+] By Natsuko Waki

LONDON, Aug 30 (Reuters) - The London interbank offered rates for overnight U.S. dollar and euro deposits were fixed at their highest levels in two weeks on Thursday, reflecting strong demand for cash funding from financial institutions.

Concerns more financial institutions may face heavy losses as a result of a global credit market disruption, itself rooted in the troubled U.S. subprime mortgage sector, also drove demand for sterling overnight cash. Overnight sterling interbank rates were fixed at their highest level in a week.

Three-month euro rates matched the level seen on August 23, its highest level in six years.


"This is a liquidity squeeze in the short end of the market. It's the credit squeeze working its way through the curve, causing some spikes in particular period," said Henry Wilkes, head of trading desk at Brown Brothers Harriman.

Link to full Reuters article.