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Inverted yield curve
Recently we just witnessed an inverted yield curve whereby 12m sibor is lower than 3m sibor. Because of this some people have opted to take up loans pegged to the 12m sibor. It remains to be seen whether the rates will remain high in the year ahead but predictions on the Fed Funds Rate are showing us that it is very likely to fall to 1.50% come the next FOMC meeting (Oct 28-29 2008). This should have some effect on dampening Sibor and SOR rates. For Sibor and SOR rates chart check out (links deleted)