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Still tensions on the interbank market

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The broad agreement reached by the EU leaders on the recovery fund leaves a lot of uncertainty regarding the timing and modalities of the aid

During the week appointments with the Fed meeting (tomorrow) and the ECB meeting (Thursday). The Fed is expected to leave rates unchanged and at the limit take some technical decisions to remedy the anomaly of the malfunctioning of the interbank (high Libor-Ois spread ).
On this front there are improvements in the USA with a drop of about 25 cents for the Libor usd 3 months and contextual reduction of the spread. This anomaly is expected to return in the coming months: the 3-month Libor is now at 0, 88% and for June (Future) it is expected at 0, 38% (please note that the Euribor-Ois or Libor usd-Ois spread represents the premium on the risk of an interbank credit on a term deposit compared to a “demand” deposit, ie risk-free. This spread is a valid indicator of the degree of confidence existing on the interbank market; follow rates and cost of funding on www.aritma.eu ).
The ECB will be called to offer yet another crutch to European “procrastination”;  » Read More

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