Oct. 17 (Bloomberg) -- The cost of borrowing dollars in London fell, rounding off the first weekly decline since July, after central banks around the world pumped unprecedented amounts of cash into money markets and governments backed loans.
The London interbank offered rate, or Libor, for three-month loans in dollars dropped for a fifth day, sliding 8 basis points, or 0.08 percentage point, to 4.42 percent, the British Bankers' Association said. It declined 40 basis points this week. The overnight rate for dollars slid 27 basis points to 1.67 percent, the lowest level since September 2004. Asian rates also fell.
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This comes in as a huge relief for the credit markets. The gyrations in credit markets have a profound effect on the stock market. Watch the Libor closely.
Also keep an eye of TED SPREAD $TED.
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