The Financial Ninja details the recent increase (far from a spike) in LIBOR:
Remember our good friend LIBOR? Well, he's totally causing shit again. So don't get too excited about this short squeeze... errr... rally. (You don't put in THE bottom with a spike in Libor.)
Three-Month Libor for Dollars Increases for 11th Day: "The cost of borrowing in dollars for three months in London rose for an 11th day as banks sought cash to cover their commitments through the end of the first quarter.
The London interbank offered rate, or Libor, that banks say they charge each other for such loans climbed two basis points to 1.33 percent, the highest level since Jan. 8, the British Bankers’ Association said. The Libor-OIS spread, a gauge of bank reluctance to lend, increased to the most since Jan. 9.