European Money Markets Improve

“The initiatives that governments have taken are beginning to work. We're seeing a lot of improvement.” -Laurence Mutkin, Morgan Stanley.

More signs of improvement.

European Money-Market Rate Drops to Lowest Since Lehman Failure: “The cost of borrowing in euros for three months fell to the lowest level since before Lehman Brothers Holdings Inc. collapsed as governments stepped up efforts to boost bank balance sheets and policy makers offered cash to revive lending.

The London interbank offered rate, or Libor, that banks charge each other for such loans dropped 3 basis points to 4.96 percent today, the British Bankers' Association said. That's the lowest level since Sept. 12, the Friday before Lehman failed. The overnight dollar rate slid 23 basis points to 1.28 percent, below the Federal Reserve's target for the first time since Oct. 3.”