Nov. 8 (Bloomberg) -- The cost for European banks to fund in dollars rose, according to money-market indicators.
The one-year cross-currency basis swap, the rate banks pay to convert euro payments into dollars, was 68 basis points below Euribor at 8:47 a.m. in London, from minus 65 yesterday, according to data compiled by Bloomberg.
The three-month basis swap was 100 basis points under Euribor from minus 102 yesterday. A basis point is 0.01 percentage point.
A measure of banks’ reluctance to lend to one another in Europe was little changed. The Euribor-OIS spread, the difference between the borrowing benchmark and overnight index held at 86.5 basis points.
Lenders increased overnight deposits at the European Central Bank to the highest level in more than 16 months.
Banks parked 299 billion euros ($412 billion) with the Frankfurt-based ECB yesterday, up from 288 billion euros on Nov. 4. That’s the most since June 30, 2010, and compares with a year-to-date average of 71 billion euros.
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