Money-Market Rates May Rise After U.S. Bank Bailout-Talks Stall
Bloomberg Report :
Money-market rates may rise in Europe after talks on a U.S. government rescue plan for banks stalled and regulators seized Washington Mutual Inc., deepening concern financial institutions will hoard cash and curb lending.
One-month dollar loans were trading at 4.4 percent, according to Patrick Jacq, a fixed-income strategist in Paris at BNP Paribas SA, France’s biggest bank. The London interbank offered rate for such loans was at 3.71 percent yesterday, the highest since January. Three-month loans were at 4.6 percent, Jacq said, compared with yesterday’s 3.77 percent Libor.