WSJ: Key Euro, Sterling Libor Rates Fall; Dollar Rate Unchanged
LONDON (Dow Jones)--The cost of borrowing three-month euros and sterling in the London interbank market was lower Monday, while the dollar rate remained unchanged, as peripheral euro-zone yield spreads tightened.
Data from the British Bankers' Association showed the euro rate was lower at 0.99125%, down from 0.99250% Friday, the sterling rate also moved lower to 0.73750% from 0.73913 Friday. The dollar rate held steady at 0.28438%.
Despite tightening peripheral yield spreads, uncertainty is set to linger until markets receive clarification about Ireland's debt situation, and the spread between three-month euro Libor and the euro overnight index average rate, a barometer of market stress, widened to 24.5 basis points from 24.0 basis points Friday.
-By Eva Szalay, Dow Jones Newswires; +44-20-7842-9495; eva.szalay@dowjones.com
