Libor Grows Further to Hit 23-Month High of 1.006%

Source: Bloomberg

The London Interbank Offered Rate for the greenback grew for the third straight session to breach 1% for the first time in nearly two years. DXY is down 0.82%.

• The Libor rate rose by roughly one basis point to 1.006%, hitting its highest level in 23 months since April 2020.
• The rate has already grown by some 50 basis points so far this month, as traders widely anticipate the Federal Reserve to maintain a more hawkish stance.
• The two-year US Treasury yields have also increased by 100 basis points in the month, reaching the highest level in over three years.
• The Fed hiked rates earlier in March for the first time in four years, hinting at more hikes in all the remaining meetings for the year.
• Commercial paper costs also surged to the highest since the COVID-19 pandemic, with financial firms scrambling to boost their cash holdings.