Libor, the closely monitored measure of bank borrowing costs, has narrowed just a little bit:
Bloomberg: The cost of borrowing in dollars for three months fell from the highest level this year, the British Bankers’ Association said. The London interbank offered rate, or Libor, that banks charge each other for such loans dropped 7 basis points to 4.75 per cent, the BBA said today.
But we’re not quite ready to start calling this a “thaw”:
It was at 4.29 per cent a week ago and 2.82 per cent a month ago.
Meanwhile, the TED spread, a similar measure that also entered the popular lexicon in the past month, narrowed by an equivalet 7 basis points.