Money-market indicators signaled the
ability of banks to borrow and lend short-term funds stabilized
as the gap between the London interbank offered rate and the
Federal funds rate was unchanged.
The three-month London interbank offered rate, or Libor,
which represents the rate at which banks say it would cost to
borrow from another, was 0.46685 percent, unchanged, according
to the British Bankers’ Association.
The Libor-OIS spread, a gauge of banks’ reluctance to lend,
was unchanged at 30.8 basis points. The gap is at the lowest
since October. Overnight index swaps, or OIS, give traders
predictions on where the Federal Reserve’s...