Market Is Still In A Limbo As Libor For Dollars Climb!

On Bloomberg news..

• Libor for Dollars Climbs; Three-Month Rate Snaps 23-Day Decline
  
  By Anchalee Worrachate
  
  Nov. 13 (Bloomberg) -- The cost of borrowing dollars for three months in London rose, snapping a 23-day decline, signaling policy makers have yet to succeed in thawing the global credit freeze.
  
  The London interbank offered rate, or Libor, that banks say they charge each other for such loans increased almost 2 basis points to 2.15 percent today, according to British Bankers' Association data. The last time the rate climbed was Oct. 10. The overnight rate also rose 2 basis points, to 0.40 percent, or 60 basis points below the Federal Reserve's target rate.
  
  Declines in money-market rates may be petering out amid signs the financial crisis will persist and is spreading to the global economy. U.S. Treasury Secretary Henry Paulson said yesterday he plans to use the second half of the $700 billion financial-rescue program to help relieve pressures on consumer credit, scrapping an effort to buy devalued mortgage assets.
  
  ``The market is still in a limbo, and Paulson's statement yesterday doesn't help,'' said Robin Marshall, head of international fixed income in London at NCL Smith & Williamson, which oversees about $20 billion in assets. ``It's true U.S. policy makers have done a lot to address important issues, but given the magnitude of the problem, the $700 billion package is looking too small rather than too big.''

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