March 1 (Bloomberg) -- A measure of European banks’ reluctance to lend to one another rose for the first time in 1 1/2 months, a money market indicator shows.
The Euribor-OIS spread, the difference between the euro interbank offered rate and overnight indexed swaps, was 64 basis points at 9:10 a.m. in London from 63 basis points yesterday, data compiled by Bloomberg show. It’s the first time the measure has risen on a closing basis since Jan. 20.
The cost for banks to convert euro interest payments into dollars rose from a seven-month low. The three-month cross-currency basis swap was 69 basis points below Euribor, from minus 67 yesterday, the lowest since Aug. 5. The measure was 114 below Euribor at the start of the year.
The one-year basis swap was 56 basis points less than Euribor from minus 55 yesterday. A basis point is 0.01 percentage point.
Lenders reduced overnight deposits at the ECB yesterday, placing 475 billion euros ($632 billion) with the central bank, down from 481 billion euros on Feb. 28.
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