Dollar-Funding Stress Eases With Libor Holding at 20-Month Low

Money-market indicators showed short-term dollar funding levels eased with the rate banks say they can borrow from each other in London at a 20-month low.

The three-month dollar London interbank offered rate, or Libor, held for a second day at 0.2771 percent, the lowest since Aug. 8, 2011, according to the British Bankers’ Association. The Libor-OIS spread, a gauge of banks reluctance to lend, narrowed to 14.5 basis points from 14.7 basis points the day earlier.