April 24 (Bloomberg) -- European banks’ reluctance to lend to one another held near the lowest level in more than eight months, according to a money-market indicator.
The Euribor-OIS spread, the difference between the euro interbank offered rate and overnight indexed swaps, was little changed at 40 basis points at 8:30 a.m. in London, data compiled by Bloomberg show. The measure reached 39 on April 20, the lowest level since the start of August last year.
The cost for banks to convert euro interest payments into dollars was unchanged for the third day at the lowest in 8 1/2 months. The three-month cross-currency basis swap was 47.5 basis points below Euribor.
The one-year basis swap was little changed at 55 basis points less than Euribor. A basis point is 0.01 percentage point.
Lenders’ cut overnight deposits at the European Central Bank yesterday, placing 768 billion euros ($1 trillion) with the Frankfurt-based lender from 776 billion euros on April 20.
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