What Libor is referring to ?

General discussions about futures.
Post Reply
oem7110
Roundtable Knight
Roundtable Knight
Posts: 390
Joined: Wed Jul 12, 2006 9:33 pm

What Libor is referring to ?

Post by oem7110 »

Referring to EM_0_I0B LIBOR(1Mth), it should be 0.5% now, but the data show 99.8.
I get no idea about 99.8, does it ready referring to LIBOR or something else.

Does anyone have any suggestions?

Thanks in advance for any suggestions

Image
jas-105
Roundtable Knight
Roundtable Knight
Posts: 130
Joined: Sat Aug 02, 2008 2:32 am
Location: London, England.

Post by jas-105 »

The derived interest rate is 100 - 99.8, so 0.2%.
The reason it is different from the actual bank rate of 0.5% is because this is the average rate that banks charge each other to borrow/lend.
The banks setting these rates are largely crooked so be careful !
oem7110
Roundtable Knight
Roundtable Knight
Posts: 390
Joined: Wed Jul 12, 2006 9:33 pm

Post by oem7110 »

jas-105 wrote:The derived interest rate is 100 - 99.8, so 0.2%.
The reason it is different from the actual bank rate of 0.5% is because this is the average rate that banks charge each other to borrow/lend.
The banks setting these rates are largely crooked so be careful !
But the actual bank rate of 0.5% is actually reflecting those borrow/lend activities between banks, will it be more representative than derived interest rate at 0.2%?

Do you have any suggestions?

Thanks you very much for any suggestions
Post Reply