The US presidential election continues to sink deeper into legal wrangling, eliciting weariness and increasing frustration from most sections of the US electorate. Nor does a speedy end seem in sight. Once again, volume in the interbank dollar swap market was reduced to a minimum. Spreads scarcely altered over the course of the week. For the most part, the swap market traded in step with stocks. By yesterday (Thursday), the five year mid-market was 101bp and the 10 year mid-market was 112.5bp, only 0.5bp-1bp wider than a week ago. Thirty year swaps are about 0.5bp wider than 10 year levels, and finished the week at around 113bp over long bonds.
November 17, 2000
