Europe's debt problems and LIBOR

Back in the fall of 2008, credit spreads soared as investors rushed out of riskier assets and plunged into the safety of Treasuries. While we are seeing spreads widen considerably in Europe - the yield on Greek bonds has soared compared to bonds issued by Germany, changes in spreads have been mild in the U.S.

Nonetheless, the 3-month LIBOR rate has started to tick higher. After bottoming and about 25 basis points, the rate has inched up over the past six weeks or so to 36 basis points.

That's not anything to be alarmed about at this point. Still, the upward drift bears watching.