One-month Libor rises to 8-year high on expectations for June Fed move

London Interbank Offered Rate (LIBOR) or the cost of one-month US dollar loans between banks has risen to its highest level in more than eight years, reflecting an increasing conviction among traders that the Federal Reserve will raise interest rates by 25 basis points at its policy meeting in June.

The LIBOR rose to 1.03% on Tuesday; the highest in 8 years.

The CME model puts the probability of the June rate hike at 83.1%, while the Bloomberg puts the odds at 95%.