More on the Money Market

Since I talked about the money market last week some other commentators/economists/traders have put their opinions forward. All are watching this market carefully as in 2008 it was responsible for the fall of Lehman Brothers.

Here are some graphs for EURIBOR (1 week, 1 month, 12 months). As you can see in the last 12 months all measures of EURIBOR have been increasing. Nevertheless, the strain in the market does not yet resemble the 2008 problems. Of course some of the increase is attributable to the increase in the key policy rate by the ECB.
I’ll keep you posted, but for major shifts we need to wait for the speech from Bernanke this Friday.

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