Today's LIBOR Rates
1 M |
0.31563 |
 |
3 M |
0.47500 |
|
6 M |
0.68794 |
|
1 YR |
1.06438 |
|
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March 01, 2010
According Market News International, the LIBOR/OIS Spread moved in contrary directions for the Euro and other key currencies. LIBOR stands for London Interbank Offered Rate and is a filtered average of rates that banks charge each other for short-term, unsecured loans.
The LIBOR-OIS Spread for the Euro shrank 0.67 basis points as Three-Month Euro LIBOR declined by 0.12 basis points and the OIS component increased by 0.55 points. These index movements precede an announcement by the European Central Bank (ECB) on the future of its emergency liquidity program to stimulate Europe’s economy amid the downturn.
The LIBOR-OIS Spread is a barometer of banks’ willingness to lend as it compares Three-Month LIBOR rates with the historically more stable Overnight Indexed Swap, an anticipated monthly average of central bank rates. The closer LIBOR hews to the OIS component, the smaller the spread and the higher the indication of bank confidence.