Dollar Libor Slumps Most in a Decade as Market Plays Catch Up
- Three-month rate fixes lower by 4.063 basis points Thursday
- Market may be catching up to cash rates, BMO’s Hill says
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One of the world’s most important borrowing benchmarks staged its biggest single-day decline in a decade on Thursday.
The three-month London interbank offered rate for dollars sank 4.063 basis points to 2.697 percent, the largest one-day slide since May 2009. The move may reflect a benchmark that’s making up ground following a repricing of short-end Treasuries and associated instruments in the wake of the Federal Reserve’s dovish pivot in recent weeks.