Libor Surges to 7-Year High as Fed Seen Tightening Faster: ChartBy
The three-month U.S. dollar London interbank offered rate jumped on Thursday by the most since August, reaching 0.9 percent, the highest since May 2009. Investors are betting that President-elect Donald Trump’s policies will spur faster interest-rate increases from the Federal Reserve as he ramps up government spending. The market in overnight indexed swaps is pricing in a greater probability of a Fed rate hike in December, leading Libor rates higher, Alex Roever, head of U.S. rates strategy at J.P. Morgan Securities LLC, said in a report Thursday.
— With assistance by Liz McCormick