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Chart of the Day: Libor spread widens

The risk premia over the longer horizon are moving faster. This chart created in St. Louis Fed's dashboard shows the spread between 1-month and 3-month Libor to the highest level since May 2009. At the peak of the crisis…

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Chart of the Day: Libor spread widens
Chart courtesy - FxWirePro; St. Louis Fed

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The risk premia over the longer horizon are moving faster. This chart created in St. Louis Fed's dashboard shows the spread between 1-month and 3-month Libor to the highest level since May 2009. At the peak of the crisis, the spread was slightly above a percent. Currently, it is around 0.35 percent but if it continues to move towards 50 basis points mark, it would be very stressful in the financial markets.

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