LIBOR still dropping...

michaels

inspector_monkfish wrote: »

The lowest 3mth Premium in the past 12mths cycle of rate cuts, was early Jan, immediately before the Jan 50bp rate cut, when it got down to just 50pts.
But remember, just last October we had a premium of 177pts!! :eek:

So hanging around 100pts seems to be a happy medium for a while, as it continues to tic down a point or 2 each day.

3 month (or whatever duration) libor will price in anticipated interest rate changes - ie the day before and expected cat of 50 basis points the libor spread will likely be 50 points lower than the day after if the market expectation for future rate changes has not changed.

Reurters often quotes the Libor/ois spread which is the spread between Libor and the market concensus prediction for 'average' base rates over the period.

inspector_monkfish

michaels wrote: »

3 month (or whatever duration) libor will price in anticipated interest rate changes - ie the day before and expected cat of 50 basis points the libor spread will likely be 50 points lower than the day after if the market expectation for future rate changes has not changed.

Reurters often quotes the Libor/ois spread which is the spread between Libor and the market concensus prediction for 'average' base rates over the period.

Yes, I know.

inspector_monkfish

michaels wrote: »

Interesting - I had always thought that Libor was in effect a summaryt of what had happened in the market that morning rather than an instrument in its own right

its not really an instrument, more a kind of indication for where the markets are in a particular period on each day.

they are often used in corporate loan fixing agreements.
so you sometimes see them peak at little bit at ends of each month/quarter when Banks have alot of extra loans to fund.

mark55man

inspector_monkfish wrote: »

Thursday looks like its going to be a pointless event really.
..snip..
Probably be a bit of waffle about how the QE is going, and then Merv and his mates will all be off down the pub for a few pints of Bombardier!
...snip.

two things I can agree whole heartedly with. although using the phrases pointless and few pints of bombardier in the same quote upsets me

inspector_monkfish

3mth Libor estimated around 1.565 today.
Another tic lower.

inspector_monkfish

inspector_monkfish wrote: »

3mth Libor estimated around 1.565 today.
Another tic lower.

came out at 1.56375

exactly 1 tic lower than yesterday

RomansProperties

I thought they set it at 12?
All good news it dropping.
Only 15 minutes to go until we find out about the base rate.

inspector_monkfish

RomansProperties wrote: »

I thought they set it at 12?
All good news it dropping.
Only 15 minutes to go until we find out about the base rate.

they have to be submitted to the BBA by 11.00.
it then takes the BBA between 30 and 60mins to collate the figures and release them.
Usually around 11.30/45am-ish they are published.

RomansProperties

I use selftrade to see the daily update normally about 3pm.

inspector_monkfish

RomansProperties wrote: »

I use selftrade to see the daily update normally about 3pm.

what period do u want to know
i can tell you now...