Libor Jumps Most Since 2008 as Traders Bet on Bigger Fed Hikes
- Three-month benchmark rises to highest level since early 2019
- Jump comes as overnight index swaps reprice Fed rate hikes
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The three-month London interbank offered rate for dollars notched its biggest increase since 2008, soaring to the highest level in more than three years as traders anticipate larger interest-rate hikes by the Federal Reserve.
Libor rose for the fourth straight session, jumping almost 23 basis points to 2.7403%, in the largest one-day increase since September 2008. The spread of Libor over overnight index swaps widened to roughly 12 basis points from minus 5.7 basis points the prior session.