Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Dollar Funding Costs Rise to Two-Week High in Euro Money Markets

Dec. 13 (Bloomberg) -- The cost for European banks to borrow in dollars rose to the highest in two weeks, according to money-market indicators.

The three-month cross-currency basis swap, the rate banks pay to convert euro payments into dollars, was 128 basis points below the euro interbank offered rate at 8:13 a.m. in London. It has widened by 19 basis points since Dec. 8, when Europe’s leaders met in Brussels to address the region’s debt crisis.

The one-year basis swap was at 90 basis points under Euribor from minus 89 basis points yesterday, data compiled by Bloomberg show. A basis point is 0.01 percentage point.

A measure of banks’ reluctance to lend to one another in Europe rose. The Euribor-OIS spread, the difference between the borrowing benchmark and overnight index swaps, was at 95.5 basis points from 94.6 yesterday.

Lenders increased overnight deposits at the European Central Bank, placing 346 billion euros ($457 billion) at the Frankfurt-based ECB yesterday, from 335 billion euros on Dec. 9. That’s the most since June 2010 and compares with a year-to-date weekly average of 89 billion euros.

To contact the reporter on this story: Namitha Jagadeesh in London at njagadeesh@bloomberg.net

To contact the editor responsible for this story: Paul Armstrong at parmstrong10@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.