As a sign that the credit crisis has eased significantly for the time being, Overnight Libor has dropped to its lowest levels in years to 0.73125%. After spiking to 6.43% at a time when the Fed Funds Rate was at 2% on September 16th, and then spiking to 5.09% again on October 9th, O/N Libor is now below the 1% Fed Funds Rate. Let's hope it stays that way!
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