Monday, November 2, 2009

INTEREST RATES

3M USD LIBOR was left unchanged throughout last week at 0.28%. It has been at this level for nearly a month. The US Treasuries are quoting higher today which has brought the yields down by over 9 bps for maturities over 5Y. The 10Y yields are quoting at 3.41% and the 2Y yields at 0.90%.




This week there are host of central bank meetings lined up. The RBA rate announcement tomorrow (3rd-Nov), FOMC Mtg on Wednesday, BoE and ECB meetings on Thursday. Among these only RBA is expected to increase rates by another 25 bps. Last month, RBA became the first G-8 central bankers to raise its key interest rate from 3.00% to 3.25%.

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