Interbank confidence continues to rise

In the three-month market, interbank confidence continued to rise with dollar borrowing costs falling 0.05 percentage points from 2.22% yesterday to 2.17% today. Sterling Libor dropped to 4.10% from 4.12%, while three-month Euro borrowing rates fell from 4.15% to 4.11%.

In the overnight markets, Euro Libor fell from 2.98% to 2.93%, dollar Libor rose to 0.44% from 0.4%, and sterling rates remained constant from yesterday at 3%.

The Ted spread, a measure of perceived counterparty risk, closed yester