Credit Markets See More Gradual Improvements

Banks, Credit Markets, Treasury Bills, US Economy

 Credit markets see more gradual improvements The government’s efforts to crank open the credit markets have led to some mild improvements in lending rates and Treasury bill yields. But it will probably take months, and perhaps a few years, before lending returns to healthier levels.

It was clear Tuesday that there is still plenty of fear in the lending business — one indicator, the difference between the rate at which banks lend to other banks and the rate at which they buy U.S. government debt remains near a 25-year high.

But analysts believe that as long as conditions keep improving, the economy should be able to grow.

AP

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