Friday, June 4, 2010

Libor Worries Weigh on Front End Eurodollar Futures

2002 GMT [Dow Jones] Immune to flurry of safe-haven buying, front-end Eurodollar futures prices settled a little
lower. Hungary sovereign debt problems rekindle concerns about interbank funding stress, prompting traders to predict
gains in underlying 3-month dollar Libor. Nearby Jun '10 Eurodollars settled 1.7 BP lower at 99.425, seeing Libor rise
to 0.575% when contract expires June 14, up from 0.558% Thurs. Sep '10 settled down 4.5 BP, projecting Libor reach 0.80%
at Sept. 13 contract expiration, up from 0.755% at Thurs' settlement. Longer-dated Eurodollar prices much higher on
flight-to-safety, with Dec '13 contract settling up 20.5 BP at 96.56. (

No comments:

Post a Comment