Funding pressures in USD, YEN and YUAN.

Interbank rate on USD, Yen and Yuan peaked last friday after de announcement of the veredict of the rating agency S&P which downgraded the rating of 16 countries of the Eurozone. The most important impact of this downgrade was the immediatly revision of the rating of the EFSF. Before the close S&P also downgraded the rating of this fund, in this way the capacity of the fund to get his objectives was impaired. 

Now, the governments must increase the deposits at EFSF or accept the fact that the leverage capacity is about just 150 bn euros. Good bye big bazzoka.

As we mentioned the interbank rate on USD, Yen and Yuan are under stress as we can see.

LIBOR USD, JPY and EUR.

SHIBOR ON, 1W, 1M

SHIBOR ON 

If the pressure in funding with USD, YEN and YUAN continues, we expect coordinated movement of the FED, ECB and PBOC.