Last week saw the Reserve Bank of Australia stun everyone with a full one percentage point cut in the official cash rate to 6.0 per cent. This was quickly followed by a co-ordinated 50 basis points cut in official cash rates across western Europe and North America. As it was, none of the moves had any immediate impact in restoring any confidence to global financial markets. Equity markets continued to plunge and credit markets remained frozen with all major indicators of liquidity setting new records, yet again.In Australia, the spread between three month bank bills and the overnight interest rate swap reached almost 112 basis points on Friday and on Friday night the TED spread went to 447 basis points. The Aussie iTraxx reportedly traded as high as 270 bps on Friday before closing at 267.5 bps.Spreads on credit default swaps on Macquarie Group subordinated debt closed at 1760 bps after reportedly trading as high as 2400 bps during the day.Interestingly, the three month bank bill rate sat at just under 6.2 per cent on Friday, less than 20 bps above the official cash rate. This narrowing of the gap also happened immediately after the rate cut in September but wasn't sustained. Meanwhile, three month A$ Libor was at 7.425 per cent on Friday, the largest gap yet between onshore and offshore Aussie dollars. One month A$ Libor remains over eight per cent.