Financial Times FT.com

Questions hover over future of Libor

By Michael Mackenzie in New York

Published: May 29 2008 21:18 | Last updated: May 29 2008 21:18

Money market rates rose further on Thursday as US investment banks close their books for the fiscal second quarter this week and rising bond yields reflect expectations of Federal Reserve rate hikes this year.

The renewed volatility comes at time when the reliability of floating rates set daily, known as Libor, have been questioned by some investors amid massive mortgage and credit writedowns by banks.

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