NEW YORK Oct 14 A widely watched market gauge
of fear that reflects demand for ultra safe short-dated
government paper versus interbank lending markets narrowed
slightly on Tuesday on details of a U.S. rescue plan for
The gap of the 3-month dollar denominated Libor or London
interbank offered rate over rates on 3-month U.S. Treasury
bills narrowed to about 422 basis points early on Tuesday in
New York, from about 459 basis points late on Friday, which was
near the widest in a decade.
U.S. fixed income markets were closed on Monday for the
Columbus Day public holiday.
(Reporting by John Parry and Chris Reese; Editing by Theodore