Forwards spreads start to tighten
"Spreads are still wider [than before September 15] but the programmes put in by the US Fed and the central banks have helped liquidity in the short end, and Libor has come in quite a bit," said a senior trader in New York. "The spread for one-month cable has come in from its absolute worst of 10-14 points to two to three points now."
Dollar Libor has dropped almost 100% in the past month, reaching 2.39% on November 7 after hitting record highs of 4.82% on October 10. Last Thursday's (November 6)
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