“Until people start lending and you start to see volume, it’s the actions of the Fed that are moving the market,”
efforts to lower the London Interbank Offered Rate, or Libor. This rate has fallen, but remains far above its historical difference with Treasurys, and the declines in Libor have been ineffectual in terms of jump-starting interbank lending, making this market largely a Fed-driven market.
http://blogs.wsj.com/marketbeat/2008/11/25/maybe-the-fed-is-figuring-it-out/