A key gauge of interbank bank borrowing costs recorded its biggest one-day decline in more than 2-1/2 weeks, hinting less stress in US money markets as the Federal Reserve has injected over $200 billion in temporary cash in the US banking system. The London interbank offered rate (LIBOR) on what banks charge each other for three-month dollars fell to 2.13463%, down 2.4 basis points from Thursday which was its steepest daily fall since August 27. LIBOR is a rate benchmark for $200 trillion worth of dollar-denominated financial products, mainly interest rate swaps and floating-rate loans.

Copyright Reuters, 2019