FYI: A sharp one-day drop in the rate banks charge each other to borrow dollars — and that serves as a benchmark for trillions of dollars in loans and financial products — is raising eyebrows.
The three-month U.S Dollar Libor rate, or the London interbank offered rate, fell around 4.1 basis points to 2.697% on Thursday, its biggest one-day drop since May 2009, according to ICE Benchmark Administration. Libor is calculated each working day via a poll in which major banks submit their estimated borrowing costs.
Without an obvious catalyst, market participants suggested a litany of reasons for the surprise move, including a more dovish Federal Reserve and falling rates in money markets.
Regards,
Ted
https://www.marketwatch.com/story/biggest-one-day-drop-in-key-money-market-rate-since-2009-raises-eyebrows-2019-02-07/print
