Halister News

(Bloomberg) -- Thursday’s increase in Tokyo interbank offered rate may have been driven by changes in the rates that banks use for calculating the benchmark, according to Kenji Sato, a manager at Central Tanshi Co., a money-market dealer and broker.

• It doesn’t look like the rise in Tibor was caused by any change in the macro environment: Sato
  • Since the reform in July on how banks provide reference rates, Tibor has become more volatile, but it’s hard to pin down the exact reason
• NOTE: Onshore 3-month Tibor rose for first time since 2012 on Thursday, while offshore Tibor had first increase since July 31
• NOTE: Banks should refer to the following data when submitting rates for Tibor, according to the website of JBA Tibor Administration:
  • Observable unsecured call market
  • Observable certificates of deposit
  • Short-dated govt bonds, general-collateral repo market and overnight-index swaps
  • Expert judgment

To contact the reporters on this story: Chikako Mogi in Tokyo at cmogi@bloomberg.net; Masaki Kondo in Singapore at mkondo3@bloomberg.net To contact the editors responsible for this story: Tan Hwee Ann at hatan@bloomberg.net Nicholas Reynolds