Financial Times FT.com

Money markets driving drama

By Saskia Scholtes in New York

Published: August 19 2007 18:42 | Last updated: August 19 2007 18:42

Money market investors are emerging as drivers of the latest global financial drama, roiling credit markets and hurting corporate borrowers by shunning commercial paper and piling into short-term US government debt.

Yields on short-term Treasury bills last week made their biggest two-day fall since the “Black Monday” stock market crash of October 1987, as spooked commercial paper investors sought to put money in the safest and most liquid short-term assets.

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