1-Month LIBOR Joins 3-Month LIBOR Above U.S. Prime

Key LIBOR yields ended the day higher despite yesterday's rate cuts by central banks the world over. Of particular significance: the one-month and three-month LIBOR yields are currently above the U.S. Prime Rate. The Federal Reserve cut the target for the fed funds rate to 1.50% yesterday, so the U.S. Prime Rate is currently 4.50%.

U.S. Prime Rate = (fed funds target rate + 3)

Image courtesy The Wall Street Journal.

For a visual perspective, click here to view this chart.

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