Diary of a Financier

The Market That Never Lies, Still Telling the Truth

In Capital Markets on Fri 21 Oct 2011 at 09:31

You know how they say the bond market never lies. If that’s true, the interbank rates market is like the Pope. Here’s what 3-month LIBOR & 3-month Eurodollar Futures have to say about risk in the marketplace going into this weekend:

3mo LIBOR v Eurodollar Futures- these markets don’t lie.

I don’t have any fingers or toes left to count the “big weekends” for Eurocrat conferences since this summer. I’m not calling their bluff. I’m not saying they cannot emerge with a solution by the Japanese open. I am saying that they don’t have the resources for a sustainable solution… and the interbank markets seem to agree.


  1. I’ve talked about this here…


    And there are other posts about this laying around…
    Interesting indeed.

    There’s a Bloomberg screen that shows the historical chart of the Libor fixings submitted by banks to the BBA in the UK.

    Check that one out and you will be scared of dealing with any of the French banks or Credit Suisse….

    • Investigations of BBA LIBOR fixing underway as of the raids this week, right?
      You won’t hear a peep about those trials for the next 6-9 months, at which time they’ll drop a Bloomberg headline about some paltry $2mm fines.

  2. […] penned an important entry on Friday, in which I mentioned a interbank market that’s remained obstinately bearish despite […]

  3. […] do you all understand?  Next, maybe I’ll write a little bit more about The Market[s] That Never Lie: LIBOR, Eurodollar Futures, and I guess I can include US Treasuries(especially after today’s […]

  4. […] mean, I pounded the table about the warning signs being flashed by Eurodollar futures, and global central banks decided to […]


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