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.