Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: HPilot who wrote (425989)	10/14/2008 1:09:03 PM
From: tejek	Respond to of 1574683

Indications are that dollar-based LIBOR settings will be lower again tomorrow, with declines likely to exceed today's drop, which for three-month dollar-based LIBOR was 11.75 basis points lower. Although not exact, these indicators provide a good approximation. One very important gauge is the performance of Eurodollar contracts, which gauge three-month eurodollar deposit rates and are tightly correlated to LIBOR. The near-month contract is November and it is trading down 22 basis points on the day. Back-month contracts are showing large rate declines, too, down as much as 28 basis points for the end of 2009 and 33 basis points for early 2010. Another gauge is Tullet Prebon's quote on where participants expect tomorrow's LIBOR setting to be. The last quote, which occurred two hours ago, was at 4.40%, which translates into a 24-basis-point drop. Consistent with these declines is today's behavior of the two-year swap spread, which is down 24 basis points on the day, a reflection of confidence in the idea that variable rates such as LIBOR will decline.