Overnight UK rates jump

On Monday, overnight sterling lending rates briefly hit levels not seen in over six years, reported Reuters, as the deepening crisis surrounding Northern Rock sparked a scramble among banks for immediate access to cash.

That contrasted with three-month lending rates, which continued to inch lower as tensions in that area of the market showed further signs of easing and as investors bet that the current turmoil will force the Bank of England to lower benchmark borrowing costs.

Overnight sterli