Libor Plunges Most Since 2008 as Rate Catches Up to Fed-Cut Bets
- Three-month dollar Libor tumbles 31.4 basis points Wednesday
- Market sees 29 basis points of additional Fed cuts for March
Photographer: Luke MacGregor/Bloomberg
This article is for subscribers only.
One of the world’s most important short-term interest rates staged its biggest one-day drop in more than a decade Wednesday in a sign that markets are bracing for even lower U.S. borrowing costs in the face of the spreading coronavirus.
The three-month London interbank offered rate for dollars -- a benchmark for trillions of dollars in financial products globally -- sank 31.4 basis points to 1.00063%. That’s the biggest one-day slide since October 2008, the height of the global financial crisis.