Policy makers and bank officials are hoping it's just a Monday 'pause that refreshes.'

Short-term interests notched a mixed day on Monday, as the London rate for three-month loans in dollars declined for the 24th consecutive day, dropping another 6 basis points to 2.24%.

However, the three-month rate is still 124 basis points above the U.S. Federal Reserve's target interest rate. Further, the five-year average for the three month rate is 22 basis points. In addition, the overnight rate, or LIBOR, rose 2 basis points to 0.35%.

Also, the difference between what banks and the U.S. Treasury pay to borrow dollars for three months, the TED spread, fell another 6 basis points to 170 basis points, which is down from 387 basis points on October 10.

However, the TED spread was 87 basis points before the Lehman Brothers bankruptcy, and the current rate is still 159 basis points above the 11-basis-point, five-year average.

More progress on the credit market front.

The London rate for three-month loans in dollars declined for the 20th consecutive day, dropping another 10 basis points to 2.29%. However, the three-month rate is still 129 basis points above the U.S. Federal Reserve's target interest rate. Further, the five-year average for the three month rate is 22 basis points.

Also, the difference between what banks and the U.S. Treasury pay to borrow dollars for three months, the TED spread, fell another 9 basis points to 174 basis points, which is down from 383 basis points on October 10.

However, the TED spread was 87 basis points before the Lehman Brothers bankruptcy, and the current rate is still 163 basis points above the 11-basis-point, five-year average.

Economist Peter Dawson said credit markets have notched another good week. "It was another week of progress, with rates consistently heading lower, but more work remains," Dawson said. "Bank confidence is increasing, but it's not where it should be. More must be done by governments to remove toxic assets from banks and from the financial system to encourage more banks to lend."

More progress on the credit market front. The initiative by major central banks to increase the supply of dollars globally to free up credit continued to move rates in the right direction early Wednesday -- down -- as rates fell to their lowest level since the failure of Lehman Brothers on September 15.

The London rate for three-month loans in dollars declined for the 18th consecutive day, dropping another 20 basis points to 2.51%. However, the three-month rate is still 151 basis point above the U.S. Federal Reserve's target interest rate. Further, the five-year average for the three month rate is 22 basis points.

Also, the difference between what banks and the U.S. Treasury pay to borrow dollars for three months, the TED spread, fell another 19 basis points to 192 basis points, which is down from 383 basis points on October 10.

Still, the TED spread was 87 basis points before the Lehman Brothers bankruptcy. Economist Peter Dawson said the difference between current credit market rates and the historical averages indicate both progress and how much work remains.

Another day of progress in the credit markets. The London rate for three-month loans in dollars declined for the 17th consecutive day, dropping another 15 basis points to 2.71%.

Meanwhile, the London interbank overnight rate, or LIBOR, dipped 1 basis point to 0.38%. Also, the difference between what banks and the U.S. Treasury pay to borrow dollars for three months, the TED spread, fell 12 basis points to 211 basis points, which is down from 364 basis points on October 10.

Economist Peter Dawson said Tuesday the only thing better than falling gasoline prices is a drop in overnight interest rates. "Again, you have to like this progress. Central bank infusions of dollars continue to loosen credit markets, which is one part in solving this financial crisis," Dawson said. "Also, look for continued downward movement in bank-to-bank rates, if the [U.S. presidential] election goes as expected and Obama wins, on the belief it's a vote of confidence for policies put in place to end the financial crisis."

According to Gallup.com, U.S. Sen. Barack Obama, D-Illinois, led U.S. Sen. John McCain, R-Arizona, 55%-44% in the organization's final tracking poll.

More progress on the credit market front.

The initiative by major central banks to increase the supply of dollars globally to free-up credit continued to move rates in the right direction early Monday -- down -- as rates fell to their lowest level since the failure of Lehman Brothers on September 15.

The London rate for three-month loans in dollars declined for the 16th consecutive day, dropping another 17 basis points to 2.86%. The three-month rate for the euro, the Euribor, also fell 3 basis points to 4.74%. Rates also fell in Asia.

Meanwhile, the London interbank overnight rate, or LIBOR, decreased 2 basis points to 0.39%. In addition, the difference between what banks and the U.S. Treasury pay to borrow dollars for three months, the TED spread, fell to 224 basis points, which is down from 364 basis points on October 10.

Short-term rates, including overnight rates, are key sources of cash for corporations and other large institutions, which use the cash to pay suppliers, make payroll, roll over debt etc. Hence, very high overnight and short-term rates will discourage corporations from conducting business, restricting commerce and slowing the economy, economists say.

The global financial crisis will not be resolved in a week, or a month, or even a quarter, economists generally agree. Nevertheless, notch an impressive week of liquidity improvement for the credit markets.

The initiative by major central banks to increase the supply of dollars globally to free-up credit continued to move rates in the right direction Friday -- down -- as private banks were encouraged by U.S. Federal Reserve commercial paper buying.

The London rate for three-month loans in dollars declined for the15th consecutive day, dropping another 16 basis points to 3.03%. Meanwhile, the London interbank overnight rate, or LIBOR, plunged another 41 basis points to 0.33% -- 59 basis points below the Fed's target rate.

Short-term rates, including overnight rates, are key sources of cash for corporations and other large institutions, which use the cash to pay suppliers, make payroll, roll over debt etc. Hence, very high overnight and short-term rates will discourage corporations from conducting business, restricting commerce and slowing the economy, economists say.

Short-term interest rates continue their downward trek.

The effort by major central banks to increase the supply of dollars globally to free-up credit continued to move rates in the right direction Thursday -- down -- as private banks were encouraged by the U.S. Federal Reserve's interest rate cut and $120 billion in new swap lines with emerging market central banks.

The London rate for three-month loans in dollars declined for the 14th consecutive day, dropping another 23 basis points to 3.19%. Rates also fell in Asia: the three-month rate for Hong Kong, the HIBOR, dropped 15 basis points to 3.39%.

Meanwhile, the London interbank overnight rate, or LIBOR, plunged another 41 basis points to 0.73% - - its lowest level since January 2001.

Short-term rates, including overnight rates, are key sources of cash for corporations and other large institutions, which use the cash to pay suppliers, make payroll, roll over debt etc. Hence, very high overnight and short-term rates will discourage corporations from conducting business, restricting commerce and slowing the economy, economists say.

The thaw in short-term interest rates continues.

The effort by major central banks to increase the supply of dollars globally to free-up credit continued to move rates in the right direction Wednesday -- down -- as private banks were encouraged by commercial paper purchases by the U.S. Federal Reserve and a likely interest rate cut later today.

The London rate for three-month loans in dollars declined for the 13th consecutive day, dropping 5 basis points to 3.42%. The three-month rate for the euro, the Euribor, also fell 2 basis points to 4.83%, and the three-month rate for Hong Kong dollars, the Hibor, dropped 30 basis points to 3.54%.

Short-term rates, including overnight rates, are key sources of cash for corporations and other large institutions, which use the cash to pay suppliers, make payroll, roll over debt etc. Hence, very high overnight and short-term rates will discourage corporations from conducting business, restricting commerce and slowing the economy, economists say.

Notch another day of modest progress for the credit markets.

Short-term interest rates declined early Tuesday, as several central banks in Europe injected more cash into the financial system. The London rate for three-month loans in dollars fell 4 basis points to 3.47%, its 12th straight daily decline. The three-month rate for the euro, or Euribor, fell 5 basis points to 4.85%. However, interest rates in Asia rose, with the Hong Kong interbank offer rate, or HIBOR, rising 10 basis points to 3.84%

In addition, the difference between what banks and the U.S. Treasury pay to borrow dollars for three months, the TED spread, narrowed 14 basis points to 262 basis points Tuesday. The TED spread has now declined 172 points from 434 basis points more than a week ago.

Short-term rates, including overnight rates, are key sources of cash for corporations and other large institutions, which use the cash to pay suppliers, make payroll, roll over debt etc. Hence, very high overnight and short-term rates will discourage corporations from conducting business, restricting commerce and slowing the economy, economists say.

Short-term interest rates continued to reflect bank-to-bank and financial institution uncertainty early Monday, amid local currency declines in emerging markets, as institutional investors bought dollars and the yen in an ongoing flight-to-safety pattern.

The London interbank overnight rate, or LIBOR, fell just 1 basis point to 1.28%. In addition, the London rate for three-month loans in dollars also fell just 2 basis point to 3.51%. The rate for the euro, or EURIBOR, fell about 1 basis point to 4.91%. However, interest rates in Asia rose, with the Hong Kong interbank offer rate, or HIBOR, rising 45 basis points to 3.74%

Short-term rates, including overnight rates, are key sources of cash for corporations and other large institutions, which use the cash to pay suppliers, make payroll, roll over debt etc. Hence, very high overnight and short-term rates will discourage corporations from conducting business, restricting commerce and slowing the economy, economists say.

Short-term interest rates rose, but just slightly Friday, on the increased likelihood a global recession will prompt banks to hoard cash, even as policy makers added dollars to the global financial system. The London interbank overnight rate, or LIBOR, rose for the second straight day, climbing 7 basis points to 1.28%.

In addition, the difference between what banks and the U.S. Treasury pay to borrow dollars for three months, the TED spread, rose 4 basis points to 257 basis points Friday. Still, investors / traders should keep in mind the TED spread is still down from 434 basis points a week ago.

Short-term rates, including overnight rates, are key sources of cash for corporations and other large institutions, which use the cash to pay suppliers, make payroll, roll over debt etc. Hence, very high overnight and short-term rates will discourage corporations from conducting business, restricting commerce and slowing the economy, economists say.

Banks hoard dollars, yen in flight-to-safety.

Economist Peter Dawson said Friday concern about a slowdown in GDP among major economies, and a possible global recession, has pushed money out of equity markets -- jolting credit markets.

After steady progress over the past week, short-term rates took a pause in their journey toward normalcy early Thursday.

The London rate for three-month loans in dollars declined for a ninth consecutive day, but just slightly, dropping about 1 basis point to 3.53%. However, the London interbank overnight rate, or LIBOR, rose for the first time a week, climbing 9 basis points to 1.21%.

Short-term rates, including overnight rates, are key sources of cash for corporations and other large institutions, which use the cash to pay suppliers, make payroll, roll over debt etc. Hence, very high overnight and short-term rates will discourage corporations from conducting business, restricting commerce and slowing the economy, economists say.

Economist Peter Dawson said that, most likely, the pause in the decline in the overnight rate was just that -- a breather.

"I wouldn't read too much into it. One day is not a trend, so provided we don't see short-term rates retrace their steps, the trend remains pointed in the right direction, down," Dawson said.

The meltdown in short-term interest rates continues unabated.

The effort by major central banks to increase the supply of dollars globally to free-up credit continued to move rates in the right direction Wednesday -- down. The London interbank overnight rate, or LIBOR, fell another 16 basis points to 1.12% -- its lowest level since June 2004. The London rate for three-month loans in dollars declined for an eighth consecutive day, dropping 29 basis points to 3.54%.

In addition, the difference between what banks and the U.S. Treasury pay to borrow dollars for three months, the TED spread, fell to 248 -- down from 434 basis points a week ago.

Short-term rates, including overnight rates, are key sources of cash for corporations and other large institutions, which use the cash to pay suppliers, make payroll, roll over debt etc. Hence, very high overnight and short-term rates will discourage corporations from conducting business, restricting commerce and slowing the economy, economists say.

The slow melt in short-term interest rates continues.

The effort by major central banks to increase the supply of dollars globally to free-up credit maintained recent momentum early Tuesday. The London rate for three-month loans in dollars declined for a seventh consecutive day, dropping 12 basis points to 3.83%. Meanwhile, the London interbank overnight rate, or LIBOR, fell another 23 basis points to 1.28%. The Euribor also fell to 4.95% from 4.98%. Interest rates also fell in Asia.

Short-term rates, including overnight rates, are key sources of cash for corporations and other large institutions, which use the cash to pay suppliers, make payroll, roll over debt etc. Hence, very high overnight and short-term rates will discourage corporations from conducting business, restricting commerce and slowing the economy, economists say.

Meanwhile, the dollar remained firm early Tuesday against most major currencies, rising versus the euro and pound, but falling slightly versus the yen. The dollar was at $1.3208 and $1.6976 versus the euro and British pound, and at 101.06 versus the yen. Traders said the dollar's firmness against the euro and British pound means that some nervous remains in the credit markets, but it also can be interpreted as confidence that liquidity actions will not lead to rampant U.S. dollar inflation.

The thaw in short-term interest rates continues.

The effort by major central banks to increase the supply of dollars globally to free-up credit accelerated early Monday. The London rate for three-month loans in dollars declined for a sixth straight day, dropping 36 basis points to 4.06%. Meanwhile, the London interbank overnight rate, or LIBOR, fell another 16 basis points to 1.51%. The Euribor, the interbank overnight rate for the euro, also fell to 4.98% from 5.02%.

In addition, the difference between what banks and the U.S. Treasury pay to borrow dollars for three months, the TED spread, is now 127 basis points lower than it was on October 10.

Short-term rates, including overnight rates, are key sources of cash for corporations and other large institutions, which use the cash to pay suppliers, make payroll, roll over debt etc. Hence, very high overnight and short-term rates will discourage corporations from conducting business, restricting commerce and slowing the economy, economists say.

Economist Peter Dawson said bank-to-bank lending confidence continues to increase, which constitutes progress.