London August 3 2022: The three-month London interbank offered rate for dollars climbed to the highest level since the financial crisis as traders price in larger interest-rate hikes by the Federal Reserve.
Libor rose for the fourth straight session, rising roughly 2.5 basis points to 2.83229%, the highest since November 2008. The spread of Libor over overnight index swaps was unchanged at 17.9 basis points.
The move follows Tuesday’s surge in Treasury yields after several Fed policy makers’ comments that they’re not close to done fighting inflation prompted traders to reduce bets on rate cuts next year.
