Financial Times FT.com

Turn of year brings Libor optimism

By Paul J Davies

Published: January 6 2009 19:01 | Last updated: January 6 2009 19:01

The passing of 2008 has brought an apparent rush of optimism to one area of the markets – traders are betting on sharp declines in ­interbank lending rates over the next few weeks and months.

However, analysts and people involved in the money markets remain wary of getting overexcited about prospects for an end to the liquidity strains that almost bought the financial system to its knees in the final months of last year.

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