Interbank lending rates in the United States continues to decline in Thursday with the longer three-month Libor kicking off 10 bps to a 2.00% level narrowing some key measures of credit health.
The Libor/OIS spread narrowed 9 bps to 175 bps and the Ted-spread narrowed 10 bps to 199 bps.
Meanwhile, the overnight USD libor fell 1 bp to 0.12%.
The Financial Times reported that Verizon wireless and Vodafone closed a $17 billion syndicated loan from Morgan Stanley, Bank of America and Citigroup on Thursday, suggesting that credit is flowing.
"The one-year loan, which was syndicated to a dozen US and foreign financial institutions, is a rare sign of life in a market that has been paralyzed by banks' unwillingness to extend financing at a time of extreme financial turmoil," reads the article.
Also in U.S. news, the Senate is preparing for an epic struggle to convince members to vote in favour of a $14 billion bailout package for Detroit's Big Three automakers on Friday, after the legislation passed the House of Representatives on Wednesday evening.
By Erik Kevin Franco and edited by Nancy Girgis
©CEP News Ltd. 2008