Longer term U.S. Libor rate fell to a four-year low on Tuesday, but measures of credit tightness remained mixed as the holiday season continues to be the dominant theme in a relatively quiet credit marketplace.
The U.S. three-month libor is down another 2 bps to 1.44% on Tuesday, the lowest level since June 2004, while the overnight rate was relatively unchanged at 0.14%.
While the Libor/OIS spread narrowed 4 bps to 124 bps, the Ted-Spread widened 2 bps to 142 bps.
The big news from the overnight was the U.S. Treasury Department's promise of $5 billion in Troubled Asset Relief Program (TARP) funds in an effort to help stabilize General Motor's financing arm GMAC, and an additional $1 billion to GM to help facilitate the transition of GMAC into a bank holding company.
Elsewhere, the Canadian dollar Libor was down 4.17 bps to 1.76%, while the three-month Libor fell 0.83 bps to 2.20%.
The Euro Libor was down 1.88 bps to 2.13%, while the three-month Libor declined 3.94 bps to 2.93%.
The Sterling Libor was flat at 2.00%, while the three-month Libor fell 2.25 bps to 2.79%.
By Erik Kevin Franco and edited by Stephen Huebl
©CEP News Ltd. 2008