LIBOR (London interbank offered rate) is a critical short-term rate for banks to lend to each other and for companies to raise money to fund operations. Overnight, one-month and three-month LIBOR have all shot up recently, and markets have been watching these closely for signs of life in the credit market. MarketWatch reports that three-month USD LIBOR fell to 4.635% from 4.725% Monday, and one-month USD LIBOR declined to 4.46875% from 4.56%. This is encouraging but also the TED spread, which is the spread between 3-mo LIBOR and 3-mo T-Bills (and a key measure of credit market strain), is still around 4.5% which is a record high. See full MarketWatch story.