Money Market Rates, Tiny Signs of Improvements

Tiny signs of improvement…

Money-Market Rates in London Fall as Central Banks Inject Cash: “Money-market rates in London fell after central banks provided $254 billion of emergency cash to ease the paralysis in the credit markets and UBS AG got a $59 billion government bailout.

The London interbank offered rate, or Libor, that banks charge each other for three-month loans in dollars declined for a fourth day, sliding 5 basis points to 4.50 percent today, the British Bankers' Association said. The overnight rate fell 20 basis points to 1.94 percent, the lowest level since November 2004. Asian interbank rates also dropped.

The declines signal as much as $3 trillion of emergency funds provided by governments to tackle a collapse in trust between banks may be working. Libor is used to determine rates on $360 trillion of financial products worldwide, from mortgages to company loans, according to the BBA.”