Dollar Libor shoots up overnight

Citigroup today confirmed the US Treasury will invest $20 billion in the bank's preferred stock under the Troubled Assets Relief Programme, in addition to the $25 billion already received by the bank on October 31.

The development significantly affected overnight dollar borrowing rates, which climbed from 0.7% on Friday to 0.81% today. Meanwhile, sterling Libor stayed at 3% and euro Libor rose marginally from 2.89% to 2.9%.

Three-month dollar Libor increased by a basis point to 2.17% from 2.16%, w