relief rally, page-15

LIBOR fall to 2.47% that you mentioned is for the overnight dollar rate. The 1 month, 3 month and 6 month LIBOR rates all rose the week ending 10 October.

1 month LIBOR
6 October - 4.09250 --> 10 October - 4.58750

3 month LIBOR
6 October - 4.28875 --> 10 October - 4.81875

6 month LIBOR
6 October - 4.05250 --> 10 October - 4.39375

Along with the overnight LIBOR falling, another positive is the 1 yr LIBOR rate:

6 October - 3.95250 --> 10 October - 4.16875 (a fall from the 9th = 4.23375)

On my basic and preliminary analysis (would need more data), these figures would suggest that banks appreciate/have acted upon the initial injections of capital which has eased the immediate credit concerns, although these concerns remain for at least the next 6 months.

Make of this what you will, but one can only hope that the decline of the overnight LIBOR starts to filter through to the 1,3 and 6 month rates which would start to indicate that credit concerns are easing and the market may have reached a point of relative stability.

As always, DYOR.