Well, I ended up with this...it doesn't even sound anything close to good grammar with nice sentences though.
For the past 12 months the AA commercial paper for non-financial firms has averaged 5.02%. This figure is slightly misleading as in the month of December, prompted by federal rate cuts, rates were lowered to 4.5%. When looking at the Eurodollar futures, the April futures indicate the market anticipates a lower yield on commercial paper. The expected spot interest rate for April as of 21 January is 3.28%, levels not seen since 2005. Although not directly stated on this website (
http://www.federalreserve.gov/releases/cp/) due to inadequate trading data, it is safe to assume the current spot rate for 90 day commercial paper is roughly 3.4 – 3.5%. The Eurodollar futures market expects further rate declines. If a firm was considering short term borrowing ,
they markets thing they will be better off by waiting a couple months so they may borrow at a lower rate.
