U.S. interbank lending rates are stable on Monday despite promises from the U.S. Treasury to unveil the final details of its highly anticipated Public Private Partnership Investment Program (PPIP).

The PPIP will create subsidies to encourage private sector investments to purchase toxic debt and offset risk.

The PPIP will initially be worth $500 billion and can be expanded to $1.0 trillion if required.

According to the British Bankers' Association on Monday, the U.S. dollar Libor picked up 0.75 basis points (bps) to 0.29%, while the three-month Libor was down 0.06 bps to 1.22%.

The Ted spread narrowed 1 basis point to 101 bps, while the Libor/OSI spread held steady at 100 bps. Both are key measures of credit tightness in the U.S.

Elsewhere, the Canadian dollar Libor was up 0.33 bps to 0.50%, while the three-month Libor fell 4.17 bps to 1.06%. The Euro Libor rose 1.81 bps to 0.83%, while the three-month Libor declined 0.94 bps to 1.56%. The Sterling Libor was flat at 0.63%, while the three-month Libor pulled-back 1.94 bps to 1.73%.

By Erik Kevin Franco, efranco@economicnews.ca, edited by Nick Say, nsay@economicnews.ca