one-month bills currently offer a yield of 3.85% — nowhere near the 4.50% federal-funds target rate, where it usually trades. And this is at the busiest time of the year for Treasury supply, making it all the more surprising. “Liquidity in the money markets right now is very poor,” says Lou Crandall, analyst at R.H. Wrightson & Assoc.
lunedì, novembre 19, 2007
Libor spread at wides, Treasury-fed fund spread wide as well. Liquidity is at a premium and the LIBOR spread accounts for financial contagion fears
Posted by John Christian Falkenberg at 4:15 PM