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

Banks’ Dollar Funding Costs Decline to One-Week Low in Europe

April 12 (Bloomberg) -- The cost for banks to convert euro interest payments into dollars fell for the second day to the cheapest level in a week, according to a money-market indicator.

The three-month cross-currency basis swap was 52 basis points below the euro interbank offered rate at 12:25 p.m. in London from minus 55 yesterday, data compiled by Bloomberg show. The measure reached minus 57 on April 10, the most expensive since March 19.

The one-year basis swap was 53 basis points below Euribor from minus 56, the highest cost since March 2. A basis point is 0.01 percentage point.

European banks’ reluctance to lend to one another declined. The Euribor-OIS spread, the difference between the borrowing benchmark and overnight indexed swaps, was at 40.5 basis points from 41 basis points yesterday. The measure reached an eight-month low of 40 basis points on April 10.

Lenders cut overnight deposits at the European Central Bank yesterday, placing 653 billion euros ($858 billion) with the Frankfurt-based bank, down from 788 billion euros on April 10.

Three-month Euribor, the rate banks say they pay for three-month loans in euros, fell to 0.757 percent from 0.760 percent. One-week Euribor fell to 0.315 percent from 0.317 percent.

The London interbank offered rate, or Libor, for three-month dollar loans fell to 0.467 percent from 0.469 percent.

Three-month dollar Euribor, a gauge of dollar funding costs started by the Brussels-based European Banking Federation on April 2, declined to 0.974 percent from 0.989 percent.

To contact the reporter on this story: Katie Linsell in London at klinsell@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.