U.S. inter-bank lending rates are higher on Friday as renewed concerns over the fate of the economy are back again in the forefront.
An article in the Wall Street Journal on Friday suggests that U.S. banks are raising deposit rates in a bid to attract more capital from consumers, and Wednesday's announcement that the Treasury will not be purchasing toxic assets from firms, opting for capital injections instead, also put pressure on inter-bank rates on Thursday.
On Friday, the British Bankers Association reported USD overnight Libor at 0.4125%, up from 0.4% on Thursday and three-month Libor at 2.23625% from 2.14875%.
The Ted Spread widened 6 bps to 203 bps and the spread between the three-month Libor and Overnight Index Swaps rose 7 bps to 167 bps.
By Erik Kevin Franco and edited by Stephen Huebl
©CEP News Ltd. 2008