Bank Lending Stress Holds at 14-Month Low in Euro Money Markets
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European banks’ reluctance to lend to one another held near the lowest in more than 14 months, according to a money market indicator.
The difference between the euro interbank offered rate and overnight indexed swaps, known as the Euribor-OIS spread, was 20 basis points, or 0.2 percentage point, at 11:42 a.m. in London, according to data compiled by Bloomberg. The gap is the smallest since June 20, 2011.