Dollar Libor and Ted climb again

Three-month dollar borrowing rates rose 0.09 percentage points to 2.24% from 2.15%, as the US market came to terms with the revised Tarp deal which will not include the purchase of illiquid mortgage-backed securities. In the overnight markets, dollar Libor rose from 0.40% to 0.41%.

The Ted spread, a measure of perceived counterparty risk, closed yesterday at 1.97%. At 12:30pm London time today the Ted spread was up to 2.03%.

The Chicago Board Options Exchange's Vix volatility index, which measures