The US dollar is sizzling
Libor has been in the headlines for the past few weeks because it's been blowing out.
It's a very difficult thing to square. No on really has a satisfactory answer for why it's happened.
There have been a whole bunch of theories including a side-effect of tax reform.
For most people it comes down to the question: Should I worry or not?
Most fall on the side of 'not' because other short-term funding metrics are fine. It's specifically limited to Libor.
But it's certainly not universal. Zerohedge has a good article about a Citi analyst who is worried and is nothing the shortage of US dollar funding.
Now that could all funnel through back into USD buying. But that's something that was supposed to happen at year end due to the cross-currency basis but it didn't materialize.
There are no answers but you could say that people are beginning to worry a bit more and at the very least, it's one more worry on a scale that's lately tipped towards fear.
