While money market strategist have been discussing it for weeks, the jump in LIBOR has finally made it to the mainstream press. The Wall Street Journal writes "Libor'​s Rise Accelerates, Squeezing Short-​Term Borrowers." They tell us, "Companies are paying the most in nearly a decade for some types of short-​term borrowing, the latest threat to a long-​running U.​S. economic expansion and increasingly volatile markets. The three-​month London interbank offered rate climbed to 2.​29% in the U.​S. on Monday, its highest since November 2008. Libor measures the cost for banks to lend to one another and is used to set interest rates on roughly $​200 trillion in dollar-​based financial contracts globally, from corporate loans to home mortgages. Libor has been rising for the last 2 1/​2 years as the Federal Reserve lifts its key policy rate, but recently the pace has picked up. It has climbed nearly a full percentage point in the last six months -- outpacing the Fed -- and could rise further with the approaching end of the quarter, typically a time of elevated demand for short-​term funds in the banking sector, analysts say." Bloomberg also writes, "The Rate the Banks Once Rigged Is Jumping -- and Causing Trouble." The article says, "​They'​re calling it 'Libor'​s Revenge.' After years of drifting close to zero, the London interbank offered rate, a measure of what banks pay to borrow short-​term from one another, has suddenly jumped. For three-​month debt, it’​s risen to 2.​29 percent, the highest level since 2008."

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