While the US government seems close to an agreement on the much-debated bailout plan, market confidence is still obviously shaken. Global equities have plunged through Monday’s session, gold prices surged on safe haven flows, but the true measure of the soundness of the financial markets is overnight interest rates. When conditions are unfavorable, these rates (the rates at which banks lend to each other) will provide little to no return. As such, we will be recording overnight interest rates twice a day as a gauge of market health.
Overnight Libor Rate*:
USD: 2.56875
EUR: 3.71250
GBP: 5.26250
JPY: 0.91875
CHF: 2.54167
CAD: 3.42833
AUD: 7.25000
NZD: 8.68750
*All figures are percentages